The Australian dollar is grinding higher

Photo by Michael Dodge/Getty Images

The Australian dollar ground higher on Tuesday after falling to a three-month low earlier in the session, benefiting from improved investor sentiment and continued strength in stocks.

Profit-taking in the US dollar ahead of major data releases — including this Friday’s non-farm payrolls report — was also a contributing factor.

Here’s the scoreboard as at 7.30am AEDT.

AUD/USD 0.7835 , 0.001 , 0.13%
AUD/JPY 88.41 , 0.17 , 0.19%
AUD/CNH 5.2237 , 0.0026 , 0.05%
AUD/EUR 0.6669 , 0 , 0.00%
AUD/GBP 0.5918 , 0.0025 , 0.42%
AUD/NZD 1.0941 , 0.0069 , 0.63%
AUD/CAD 0.9783 , -0.0001 , -0.01%

Having hit a three-month low of .7786 following the release of the RBA’s October monetary policy statement, the AUD/USD ground higher over the course of European and North American trade, eventually seeing it climb back above where it began the session.

That was largely due to movements in the US dollar which rallied hard in Asia before giving back most of those earlier gains later in the session.

The Aussie also had a good session against the crosses, particularly against the Kiwi following a disappointing dairy auction overnight.

AUD/USD 5-Minute Chart

Turning to the session ahead, services PMI reports will dominate with releases scheduled from Australia, Europe, the UK and US.

In particular, there’ll be plenty of attention on the US ISM non-manufacturing PMI report, especially the employment subindex ahead of this Friday’s US non-farm payrolls report.

Outside of the PMI deluge, markets will also receive Eurozone retail sales along with weekly crude oil inventories and ADP National Employment report from the US.

On the latter, an increase in private sector payrolls of 125,000 is expected — well below the 237,000 level of August — with disruptions caused by Hurricane Harvey and Irma expected to weigh on employment growth.

On the central bank front, US Fed chair Janet Yellen, along with James Bullard of the St Louis Fed, are both scheduled to speak.

The Reserve Bank of India will also announce its October monetary policy decision. No change in policy is expected.

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