Dollar inches towards $US1.05
The Australian dollar rose to a two-month peak against its US counterpart on Tuesday as risk sentiment improved after lenders finally agreed on measures to cut Greece's long-term debt, paving the way for the release of more loans to Athens.
The Aussie climbed to $US1.0491, its highest since late September. It last fetched $US1.0480, up 0.2 per cent on the day.
The Aussie's rise was only modest as markets had been fully priced for a Greek deal, which emerged after three weeks of painful discussions.
The agreement involves a reduction of
Advertisement The Aussie was within easy reach of $US1.0625, the September peak. A break above would bring it to its highest since March.
"There is a fairly positive trend for risk assets generally and I would not be surprised to see continued gains in the offshore session," said Greg Gibbs, a strategist at Royal Bank of
He sees a possible run to $US1.0600 ahead of the Reserve Bank of
For now immediate resistance is seen at $US1.0520, with near-term support at $US1.0425.
The Aussie kept near eight-month peaks on the yen, with the Aussie fetching 86.14 yen, having risen to a high of 86.42 on Monday.
Australian government bond futures climbed off recent lows, with the three-year contract up 0.01 point at 97.300, and the 10-year contract 0.005 points higher at 96.820.