The Australian dollar slithered towards 68.50 US cents on Tuesday after twice failing to pierce 69.20 US cents, unsettling a rare period of calm in the currency after several weeks of above normal volatility.
The Aussie was weaker against the yen, which also hit a two-month high against the US dollar, on expectations that further strong economic data from country will trigger further demand for Japanese shares.
The AUD the $0.6860/64 compared with $0.6893/98 late here on Monday. Aussie/yen was 74.50/60 versus 74.73/83.
The Aussie has traded a four-cent range since the start of the month, touching an eight-month low of 67.70 cents last week, and frequently trading over a cent range in a day.
"Frequently changing views about the timing and pace of US Federal Reserve tightening have contributed most to the volatility," said HSBC chief economist John Edwards.
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