The Australian dollar was broadly steady on Tuesday, supported by higher commodities and its hefty yield advantage, ahead of a crucial inflation report which could sway market expectations on future interest rate moves. The Aussie was at $0.9755/60 against the US dollar, barely changed from $0.9760/61 late here on Monday.
Spreads between two-year Australian and US government bond yields widened to 443 basis points, from 438 points a day earlier, with investors speculating that troubles in the financial sector will see the US Federal Reserve to keep rates low. The CRB commodities index rose 0.3 percent on Monday, lifted by higher oil and gold prices.