Dollar lifts ahead of rba decision

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THE Australian dollar is slightly higher against the US dollar on increased risk appetite, with the Reserve Bank of Australia widely expected to keep the cash rate on hold later on Tuesday.

At 0708 AEST on Tuesday, the local unit was trading at 76.75 US cents, up from 76.51 cents on Monday.

Traders expect the Aussie dollar to retain its upward momentum, with the RBA still in a wait-and-see mode as its assesses the impacts of the rate cuts delivered in May and August.

Westpac strategist Imre Speizer said that although the Australian dollar looked to be losing energy in recent days, he still expected further gains to around 77 US cents, driven in part by the faltering US dollar and yield-chasing flows.

CURRENCY SNAPSHOT AT 0708 AEST ON TUESDAY

One Australian dollar buys:

* 76.75 US cents, from 76.51 cents on Monday

* 77.97 Japanese yen, from 77.65 yen

* 68.44 euro cents, from 68.13 euro cents

* 105.49 NZ cents, from 105.39 NZ cents

* 59.72 British pence, from 59.13 British pence

(*Currency closes taken at 1700 AEST previous local session)

Source: IRESS