The Australian dollar hugged a tight range on Tuesday, fenced in below US 74.5 cents ahead of a US holiday and the local central bank's rate decision due the following day.
But it kept pace with a firmer euro in a market preoccupied with rate differentials. Both Australian and eurozone interest rates are expected to rise in coming months while US rates are thought to be at or near a peak.
The Aussie dollar stood at $0.7440/45, off an intraday low at $0.7423 in thin trade. It had traded a $0.7415-$0.7462 range offshore on Monday. A widening in the Australia-US two-year bond yield spread to 62 basis points, also kept the Aussie dollar well-supported.
Comments
Comments are closed.