Investing.com - The Aussie gained on Tuesday in Asia ahead of a central bank review of interest rates with investors expecting a steady outcome.
AUD/USD traded at 0.7690, up 0.16%, while USD/JPY changed hands at 101.70, up 0.06%. GBP/USD traded at 1.2852, up 0.12%.
The Reserve Bank of Australia will release its first review of the cash rate under new Governor Philip Lowe with the record low level of 1.50% seen maintained. As well building approvals for August are due with a 7.0% fall seen month-on-month and private house approvals with a 0.5% decline in the previous month.
Earlier, in New Zealand, the NZIER business confidence survey for the third quarter came in at 26%, compared to 19% previously while capacity utilization was 92.5% from 92.9%. NZD/USD traded at 0.7290, up 0.18% after the survey was released.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted at 95.65.
Overnight, the dollar pushed higher against the other major currencies on Monday, after data showing that U.S. manufacturing activity returned to expansion in September boosted optimism over the strength of the economy.
The greenback strengthened after the Institute for Supply Management said its index of manufacturing activity rose to 51.5 last month from August’s reading of 49.4. Analysts had forecast a lesser increase to 50.3.
The reports added to hopes for a U.S. rate hike before the end of the year following upbeat U.S. consumer sentiment data released on Friday. Investing.com's Fed Rate Monitor Tool shows investors estimate a 10.3% chance of a rate hike in November, and a 61.6% figure for December.
Investors remained cautious after U.K. Prime Minister Theresa May said on Sunday that she would trigger the process of leaving the European Union by the end of March.
Triggering Article 50 of the EU's Lisbon Treaty will give Britain a two-year period to clinch one of the most complex deals in Europe since World War Two, and will redefine the country's ties with its biggest trading partner.