The Australian dollar nudged higher on Tuesday but renewed weakness in commodities and pressure from rising US interest rates capped its gains at 74 US cents. Yen strength versus the US dollar on more hawkish than expected comments from Bank of Japan Governor Toshihiko Fukui caused a small ripple of strength for other currencies.
The Aussie dollar stood at $0.7397/99, trading at the upper end of its $0.7359-$0.7402 intraday range. It found some yield support as expectations of a rise in Australia's 5.75 percent cash rate, perhaps in the third quarter, offered some protection against rising US rates.