(Australian Associated Press)
The Australian dollar has gained ground on the back of stronger commodity prices.
At 1200 AEDT on Tuesday, the local unit was trading at 74.90 US cents, up from 74.74 cents on Monday. It is also higher against other currencies including the yen and the euro.
Commonwealth Bank of Australia chief currency strategist Richard Grace says the Aussie dollar has been boosted by solid rises in commodity prices.
“Commodity prices have given the Aussie a lift,” Mr Grace said.
“We had such a strong rise in commodity prices and not just in the major commodity export of Australia – iron ore – but also in other base metals, gold and oil prices.”
Iron ore gained 1.5 per cent to hit a two-year high while oil prices rose by more than two per cent.
Most base metals were higher overnight and gold prices were up 1.1 per cent.
CURRENCY SNAPSHOT AT 1200 AEDT ON TUESDAY
One Australian dollar buys:
* 74.90 US cents, from 74.74 cents on Monday
* 83.86 Japanese yen, from 83.80 yen
* 70.59 euro cents, from 70.16 euro cents
* 60.41 British pence, from 59.79 pence
* 105.81 New Zealand cents, from 105.48 NZ cents
* CGS 5.25 per cent March 2019, 1.823pct, from 1.820pct on Monday
* CGS 4.25pct April 2026, 2.624pct, from 2.65pct
Sydney Futures Exchange prices:
* September 2016 10-year bond futures contract was at 97.350 (implying a yield of 2.650 per cent), up from 97.340 (2.660 per cent) on Monday.
* September 2016 3-year bond futures contract was at 98.090 (1.910 per cent), down from 98.100 (1.900 per cent).
(*Currency closes taken at 1700 AEST previous local session, bond market closes taken at 1630 AEST previous local session)