The Australian dollar was holding close to 0.93 against the US currency on Wednesday, but looks to offer little value against the US currency at current levels given the domestic risks.

The Australian dollar has retained a firm stance against the US currency over the past 24 hours, although the conflicting pressures have continued which has triggered some erratic trading.

The domestic trends remained generally negative with the Westpac index of consumer confidence weakening to the lowest level since 1993 according to the latest release. The decline in consumer as well as business confidence will reinforce expectations of a sharp slowdown and speculation that Reserve Bank interest rates could be cut later this year.

In contrast, commodity prices have remained firm while there has been increased speculation over investment inflows from China to take advantage of the high metals prices.

The commodity-related influences may hold sway in the short term, but the domestic economic trends are likely to be an increasingly negative influence