The Australian dollar is higher after US stocks recovered some ground after last week’s losses, as market sentiment turns around.
Early on Tuesday, the local unit was trading at 93.33 US cents, up from 93.15 cents on Monday.
Since 1700 AEST on Monday, the Australian dollar has traded between 93.06 and 93.38 US cents.
The Dow Jones Industrial Average was up 0.47 per cent after all three major US stock indices lost more than two per cent last week.
Westpac senior market strategist Imre Speizer said there was a big turnaround in the market’s mood.
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“US equities halted a week-old slide,” he said.
“There were few catalysts to point to, apart from the Portuguese central bank bailing out the country’s largest lender, containing fears of contagion.”
UPDATE: The Australian dollar remained steady after the Reserve Bank left the cash rate unchanged at 2.5 per cent.
The RBA’s decision was widely expected, and marks 12 months since the last change to the cash rate.
At 1435 AEST, the Australia dollar was at 93.27 US cents, up slightly from 93.26 US cents just before the RBA’s decision was announced.
