The Australian dollar is slightly higher against the U.S. dollar on increased risk appetite, with the Reserve Bank of Australia widely expected to keep the cash rate on hold later on Tuesday.
At the Asian on Tuesday, the local unit was trading at 76.75 U. S. cents, up from 76.51 U.S. cents on Monday.
Bank of Australia chief currency strategist Richard Grace in a research note said the Australian dollar has lifted to 76.80 U.S cents and out-performed against the major cross rates.
"Higher crude oil prices, the weekend's stronger Chinese September non-manufacturing PMI (Purchasing Managers' Index), and better performance on European equity markets has helped support the Australian dollar," he said.
"Today's (Tuesday's) Reserve Bank of Australia's board meeting is the first as new Governor, Phil Lowe at the helm," Grace said. "We don't anticipate a large change in the statement." "Rather, with Q3 (third quarter) inflation data out later this month, attention will be on next month's November board meeting," he said. At 0919 local time (AEST) the Australian dollar was trading at 76.82 U.S. cents.
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