The Australian dollar stayed near its 16-week highs on Tuesday against the world's reserve currency amid pitched speculation that the Reserve Bank of Australia will slash interest rates, Bloomberg reports.
Also spurring the Aussie higher was Melbourne-based BHP Billiton Ltd., noting iron ore production will push to 212 million tons this year. The globe's largest miner originally projected production to amount to 207 million tons earlier this year.
"We've seen market volatility levels falling substantially, and as far as currencies are concerned, that's the reason that the U.S. dollar has been on the defensive," global co-head of currency strategy Ray Attrill with National Australia Bank Ltd. in Sydney told Bloomberg on Tuesday, also indicating the Aussie has "some semblance of positive carry."
The monetary unit of the Pacific Rim nation was only slightly lower than its peak from the Monday trade session, when it notched its highest value since the beginning of June.
The Aussie has been benefiting from China releasing strong economic data, according to Reuters. The Asian nation is Australia's lead partner for commerce and trade.
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