The Australian dollar has continued to climb against its US counterpart after positive retail sales figures boost the local currency and as the US dollar index falls.
At 0635 AEDT on Tuesday, the Australian dollar was worth 76.48 US cents, up from 76.31 US cents on Monday.
Westpac says markets had remained upbeat in the wake of Friday’s solid US payrolls report, even though the US dollar index was.
‘The US dollar index is down 0.1 per cent on the day, (while) the best performer yesterday was the AUD, extending yesterday’s retail sales data assisted rally from 0.7620 to 0.7666 – a one-month high,’ Westpas said in a note.
The main event risk for the local currency on Tuesday would be the Reserve Bank’s decision on its key interest rate and the national current account data.
‘The RBA policy decision is widely expected to mark a 20th consecutive meeting on hold.
‘Q1 (first quarter) current account is expected to print at a reduced deficit of $9.9 billion (Westpac -$10.3 bn) following Q4’s $14 billion deficit.’
The Aussie dollar is also higher against the yen and the euro.
CURRENCY SNAPSHOT AT 0635 AEDT ON TUESDAY
One Australian dollar buys:
* 76.48 US cents, from 76.31 on Monday
* 83.98 Japanese yen, from 83.68 yen
* 65.39 euro cents, from 65.33 euro cents
(*Currency closes taken at 1700 AEDT previous local session)