The Australian dollar is higher, boosted by a gain in the iron ore price and a weaker greenback.
Early on Tuesday, the local currency was trading at 87.95 US cents, up from 87.75 cents on Monday.
The Australian dollar has been trading within narrow ranges ahead of major economic events this week, including local inflation figures, Chinese growth data and speeches from Reserve Bank officials.
The currency got a boost overnight as the US dollar weakened and the iron ore price rose.
“The Australian dollar has gradually moved higher overnight and is just below 88 US cents this morning, from a low of 87.50 cents yesterday afternoon,” National Australia Bank senior economist Spiros Papadopoulos said.
“The Australian dollar was also supported by a 1.0 per cent gain in the iron ore price, to $81.60 per tonne.
“The Australian dollar has been relatively stable in the past week, trading (mostly) in the 87 to 88 US cent range, but there is some key data over the next couple of days.”
All eyes on Tuesday will be on the release of minutes from the Reserve Bank of Australia’s October meeting, as well as a speech by RBA deputy governor Philip Lowe and Chinese economic growth figures.
In New York US stocks have risen, shaking off weak IBM earnings and extending the rally that began late last week even as European equity markets stumbled.
At the closing bell, the Dow Jones Industrial Average stood at 16,397.04, up 16.63 points (0.10 per cent).
The broad-based S&P 500 rose 17.18 (0.91 per cent) to 1,903.94, while the tech-rich Nasdaq Composite Index jumped 57.64 (1.35 per cent) to 4,316.07.
Dow member IBM sank 7.2 per cent after it reported a huge drop in profits and its 10th straight quarter of lower revenues.
The IBM results kept the blue-chip index in negative territory for most of the day. But the broader US equity market did well, while equity markets fell in Britain, France and Germany.
“The market corrected,” said Peter Cardillo, chief market economist at Rockwell Global Capital.
Last week’s losses “sort of cleared the decks for the markets to focus on the economy and, above all, on earnings”.
