Higher iron ore price, lower $US, boost $A
The Australian dollar is higher, boosted by a gain in the iron ore price and a weaker greenback.
At 0700 AEDT on Tuesday, the local currency was trading at 87.95 US cents, up from 87.75 cents on Monday.
The Australian dollar has been trading within narrow ranges ahead of major economic events this week, including local inflation figures, Chinese growth data and speeches from Reserve Bank officials.
The currency got a boost overnight as the US dollar weakened and the iron ore price rose.
"The Australian dollar has gradually moved higher overnight and is just below 88 US cents this morning, from a low of 87.50 cents yesterday afternoon," National Australia Bank senior economist Spiros Papadopoulos said.
"The Australian dollar was also supported by a 1.0 per cent gain in the iron ore price, to $81.60 per tonne.
"The Australian dollar has been relatively stable in the past week, trading (mostly) in the 87 to 88 US cent range, but there is some key data over the next couple of days."
All eyes on Tuesday will be on the release of minutes from the Reserve Bank of Australia's October meeting, as well as a speech by RBA deputy governor Philip Lowe and Chinese economic growth figures.
