The Australian dollar was steady against its U.S. counterpart on Tuesday, while the New Zealand dollar edged higher as geopolitical tensions continued to ease and as markets eyed the release of U.S. economic reports due later in the day.
AUDUSD was little changed at 0.7850.
Market sentiment improved after North Korea said on Tuesday it had delayed a decision on a plan to fire missiles at the U.S. Pacific territory of Guam while it watches U.S. actions a little longer.
At the same time, South Korean President Moon Jae-in said there will be no military action upon the Korean peninsula without Seoul’s consent and that the government would prevent war by all means.
Earlier Tuesday, the Reserve Bank of Australia said in the minutes of its August policy meeting that recent data had shown further improvement in the labour market, with more full-time jobs created, higher labor force participation and an increase in average hours worked.
NZDUSD added 0.12% to trade at 0.7295.
Market participants were looking ahead to U.S. retail sales data, to be released later Tuesday, for further indications on the strength of the economy after disappointing inflation figures on Friday dampened expectations for another rate hike by the Federal Reserve this year.
The greenback found some support after New York Fed President William Dudley said on Monday that he favoured another interest rate hike this year if the economic conditions evolved in line with his expectations.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.21% at 93.54, the highest since August 10.