$A is higher against an easing $US

(Australian Associated Press)

 

The Australian dollar is higher against its US counterpart.

At 0635 AEDT on Tuesday, the Australian dollar was worth 76.86 US cents, up from 76.74 US cents on Monday.

Westpac’s Imre Speizer says the US dollar, along with bond yields and equities had fallen in the offshore session.

“Possible explanations include reports that (US president Donald) Trump’s tax cuts may be phased in over several years,” he said in a Tuesday morning note.

“FBI charges against former campaign staff, and the likely announcement of the Fed (Federal Reserve) chair on Thursday,” could also be playing a role, he said.

“The US dollar index is down 0.3 per cent on the day … (while the) AUD ranged sideways between 0.7656 and 0.7688.”

Key local event risks on Tuesday included September private sector credit data which is expected to have lifted 0.5.

“The expected solid outcome reflects robust business credit and a gradual slowing in housing credit.”

Mr Speizer did not see much movement in the local currency on Tuesday.

“The pause in the US dollar’s two-month old rise should allow the AUD to take a breather between 0.7600 and 0.7700.”

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

CURRENCY SNAPSHOT AT 0635 AEDT ON TUESDAY

One Australian dollar buys:

* 76.86 US cents, from 76.74 on Monday

* 86.94 Japanese yen, from 87.21 yen

* 66.01 euro cents, from 66.07 euro cents

(*Currency closes taken at 1700 AEDT previous local session)

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