Aussie dollar relatively supported despite strengthening greenback

The Australian dollar remains relatively supported despite risk sentiment returning with a strengthening greenback.

At 9:55 local time, the local unit was trading at 71.34 U.S. cents, slightly lower than the Asian open of 71.39 U.S. cents and down from the 71.65 U.S. close on Monday.

The Australian dollar remained firm against the greenback overnight as risk sentiment returned to offshore equities, U.S. markets were close however, and encouraging comments from the People's Bank of China (PBoC) governor that there is no basis for yuan depreciation, Commonwealth Bank of Australia chief currency strategist Richard Grace said.

The release of the Reserve Bank of Australia's February board meeting minutes remains the main risk to the local unit on Tuesday, however traders aren't expecting any change to the central bank's view as published in the Statement on Monetary Policy a few days after the meeting.

"The relatively good performance of the Australian economy is a key reason why the Australian dollar remains relatively supported," Grace said. Endit