The Australian dollar is lower this morning after the US ISM data helped the greenback firm across the board

The Australian dollar is lower this morning after the US ISM data helped the greenback firm across the board.

After pushing above the 0.7800 level a number of times yesterday, the Aussie closed the session at 0.7795. It was kept to a tight trading range and only managed a high of 0.7798 before the US data was announced.

The US national factory index came in at 53.3. While the result was weaker than expected, a reading above 50 indicates the factory sector is still growing. This compared to the weak patch that Europe is currently experiencing has given strength to the greenback.

In reaction to this the Aussie dropped to an overnight low of 0.7783, where it stayed for the remainder of the session.

The cross rates had mixed results overnight. The Euro cross improved but was kept to a tight range, reaching a top of 0.6068 and a low of 0.6051. The Kiwi cross has remained steady while the AUD/JPY weakened slightly. The Sterling cross was the biggest improver overnight. It gained almost 40 points after closing, reaching 0.4120.

The US interest rate decision will be announced tonight with the rate expected to be lifted to 3.00%.

The Aussie should be fairly quiet today as Japan should be fairly quiet today as Japan begins its 3 day holiday. Any volatility should occur overnight, as US factory orders are released ahead of the US interest rate announcement. The Aussie looks to be well supported at 0.7770.