The Australian dollar is lower after European stocks lost ground in a quiet night of trade with US and UK markets closed for public holidays.

At 0635 AEST on Tuesday, the local currency was worth 75.45 US cents, down from 75.75 US cents on Monday.

European stocks gave up early gains as early elections loomed in Italy after the anti-establishment 5-Star and League parties abandoned plans to form a government.

One Australian dollar buys 82.55 Japanese yen, from 82.90 yen and 64.90 euro cents, from 64.69 euro cents.

AAP

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