Prices for homes in Australia climbed more rapidly than any time in the past four years, pushing up the value of the Aussie. Business confidence in Australia is on the upward march, which also benefited the value of the Australian dollar. New U.S. Federal Reserve Chair Janet Yellen is scheduled to deliver monetary policy testimony on Capitol Hill, which pushes up demand for the dollars of Australia and New Zealand.
The Reserve Bank of Australia last week indicated it does not plan to cut borrowing costs any time soon, which also benefits the Australian dollar, according to The Australian.
"The improved business confidence data and higher-than-anticipated growth in house prices both firm the Reserve Bank's recent guidance for a period of stability in interest rates, which is broadly supportive for the Aussie dollar," market analyst David de Ferranti with FXCM told The Australian on Tuesday.
The Aussie increased roughly 0.6 percent on Tuesday against the greenback after having touched its top rate since the middle of last month against its cross-Pacific rival.
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