(Australian Associated Press)
The Australian dollar is higher against its US counterpart amid escalating tension in the Middle East and as oil prices lift three per cent to a two-year high.
At 0635 AEDT on Tuesday, the Australian dollar was worth 76.82 US cents, up from 76.53 US cents on Monday.
Westpac’s Imre Speizer says that US equities markets again attained record highs overnight but the US dollar had fallen while the Australian lifted.
“The US dollar index is down 0.2 per cent on the day …. (the) AUD rose from 0.7650 to 0.7682,” he said in a morning note.
The main local even risk on Tuesday would be the Reserve Bank of Australia’s interest rate decision and accompanying statement.
“The RBA policy decision is expected to be on hold. Key aspects of the statement will be on the subdued retail spending partial despite ongoing job gains, a cooling housing market and the inflation outlook.”
Mr Speizer said he expected to see the local currency “consolidating in a 0.7640-0.7730 range”.
“Daily momentum remains negative, though, the next downside target at 0.7625 probably requiring further US dollar gains.”
The Aussie dollar is also higher against the euro but down fractionally against the yen.
CURRENCY SNAPSHOT AT 0635 AEDT ON TUESDAY
One Australian dollar buys:
* 76.82 US cents, from 76.53 on Monday
* 87.41 Japanese yen, from 87.45 yen
* 66.18 euro cents, from 65.91 euro cents
(*Currency closes taken at 1700 AEDT previous local session)