The Australian dollar is weaker as a decline in American consumer confidence fails to stop the greenback from rising against the euro.

At 7am (AEDT), the local currency was trading at US76.21c, down from US76.75c on Friday.

The Australian unit slipped during offshore trade as the US dollar rose against the euro.

This occurred even though the University of Michigan’s preliminary reading for March showed a decline in consumer confidence.

Normally, poor US economic data would dent the greenback, but the US dollar rose as the first week of the European Central Bank’s €1.1 trillion ($A1.52 trillion) bond buying program hurt the euro, Westpac senior market strategist Imre Speizer said.

It comes as the US Federal Reserve prepares to hold a two-day policy meeting this week.

The US dollar could fall on Thursday morning, Australian time, if the accompanying statement removed the word “patience”, in regards to the timing of a possible US interest rate rise, without giving specifics on when the next increase could occur.

Source : Business Spectator