The Australian dollar remained firm overnight despite a slight recovery in the greenback after U.S. treasury yields rose following upbeat economic data.
At the Asian open on Wednesday, the local unit was trading at 73.69 U.S. cents, slightly lower than the 73.74 U.S. cent close on Tuesday.
The strength in the unit was supported from higher iron ore prices after encouraging Chinese economic activity lifted broader base metals, Commonwealth Bank of Australia senior currency strategist Elias Haddad said in a note to clients.
“This will lead to a further improvement in Australia’s terms of trade and raise the fundamental value of AUD,” Haddad said.
At 1019 local time (AEDT), the Australian dollar was trading at 73.63 U.S. cents. Enditem