Investing.com - The Aussie saw a smart jump on Tuesday in Asia as investors looked ahead to a private manufacturing PMI from China and a light regional day with markets in Japan closed.
AUD/USD traded at 0.7194, up 0.10%, while USD/JPY changed hands at 117.50. Markets were rattled by tweets from Donald Trump suggesting a hard line against North Korea's plans to test an intercontinental ballastic missile capable of carrying a nuclear warhead that could reach the U.S. West Coast.
Ahead, the Caixin manufacturing PMI for December is expected to show a drop to 50.7 from 50.9 in November.
At the weekend, data showed the official China PMI from the China Federation of Logistics and Purchasing and the National Bureau of Statistics fell to 51.4 in December, slightly weaker than expectations.
Overnight, the dollar regained momentum lost during the last two weeks against a basket of six major currencies on Monday.
In early Asia, the U.S. dollar index was last quoted at 102.37 in thin trade with many markets closed overnight.
The greenback finished 2016 at 14-year highs on market expectations that the Fed will increase rates three times this year, and that incoming President Trump will stoke growth and inflation with a program of investment in infrastructure.