$A up on US weakness, iron ore price

The Australian dollar is higher, on a weak US currency and improved pricing of iron ore.

At 1200 AEDT on Tuesday, the currency was trading at 105.54 US cents, up from 105.35 cents on Monday afternoon.

Since 0700 AEDT, it has traded between 105.36 US cents and 105.56 cents.

CMC Markets chief market strategist Michael McCarthy said the local currency was being mainly influenced by global market moves.

"I think it's as much about US dollar weakness as Aussie dollar strength that's holding us up there at the moment," he said.

"Clearly increases in iron ore prices are also a factor.

However, we've run into some pretty strong headwinds just below 106 (US cents)."

Mr McCarthy said the US currency was likely to strengthen in the near future, and investors grew more confident that the fiscal cliff will be resolved.

"It's quite clear in the reports we've seen overnight that the politicians are moving closer. Both sides have given ground, so that better outlook could see some US dollar strength."

The fiscal cliff is a series of tax rises and spending cuts which are due to come in at the start of 2013, with both the Republican and Democratic parties scrambling to resolve it by year's end.

Meanwhile, Australian bond futures prices were lower at noon.

At 1200 AEDT on Tuesday, the March 10-year bond futures contract was at 96.635 (implying a yield of 3.365 per cent), down from 96.670 (3.330 per cent) on Monday.

The March three-year bond futures contract was trading at 97.200 (2.800 per cent), down from 97.235 (2.765 per cent).

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    0.9270-0.0017-0.18%
    AUDUSD=X
    0.5521-0.0014-0.25%
    AUDGBP=X
    0.6707-0.0014-0.21%
    AUDEUR=X
  • Commodities
    Commodities
    NamePriceChange% Chg