The Australian dollar has fallen against the US dollar.

At 0635 AEDT on Tuesday, the Australian dollar was worth 78.05 US cents, down from 78.31 US cents on Monday.

Westpac’s Imre Speizer says risk sentiment had remained elevated pushing equities to fresh record highs while the US dollar rose.

“The US dollar index is up 0.3 per cent on the day … (while the ) AUD slipped from 0.7834 to 0.7797,” he said in a Tuesday morning note.

With no economic data to report, the key event risk for Tuesday would be US and European manufacturing and services activity data.

He said he thought the Australian dollar on Tuesday had the “potential to move below .7800 if the US dollar’s recent recovery persists”.

The Aussie dollar is also lower against the yen and the euro.

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