The Australian dollar moved higher against its U.S. counterpart on Tuesday, helped by the release of upbeat Australian data, while the New Zealand dollar held steady near recent multi-month lows as demand for the greenback remained broadly supported.
AUDUSD was up 0.41% at 0.7784.
The National Australia Bank reported on Tuesday that its business confidence index rose to 7 in September from a reading of 5 the previous month. Analysts had expected the index to inch up to 6 last month.
Meanwhile, NZDUSD was almost unchanged at 0.7069, not far from Friday’s four-month trough of 0.7059, still under pressure after a final vote count in the country’s tight general election over the weekend failed to identify a clear winner.
The greenback remained broadly supported as the wage data from Friday’s U.S. jobs report was seen as potentially boosting inflation.
The uptick in wage inflation bolstered expectations that the Federal Reserve will hike interest rates in December.
But geopolitical tensions persisted following reports last week that North Korea was preparing a long-range missile test.
There were concerns that Pyongyang could mark Tuesday, when it celebrates the founding of its ruling party, with some sort of provocation.