Hovering Near Session Highs

The greenback extended its losses to a third day on Tuesday, helping AUD/USD hit session highs of 0.7740, the rate hovering around closing levels at 0.7736.

• Iron ore is slightly lower early on in Singapore, but data yesterday showed shipments from Port Hedland did slip slightly from the previous month, with shipments to China dipping.
• Some of the upside in AUD is being attributed to a push higher in NZD after the RBNZ tightened macro-prudential policy to tame the domestic housing market. The RBNZ notified markets it will reinstate mortgage lending restrictions on March 1 and tighten them further for investors from May 1.
• AUDUSD is firmer. Friday's price action is being monitored as a possible reversal signal following last week's inability to clear the 50-day EMA. The pair has breached resistance at 0.7704, Jan 29 high and this signals scope for a climb towards 0.7782/0.7820, the Jan 21 high and Jan 6 high respectively. The latter is also a bull trigger. On the downside, a break of 0.7564, Feb 2 low would resume recent bearish pressure.
• Market participants look ahead to Westpac Consumer Confidence at 2330GMT/1030AEDT. Volumes in the time zone are expected to be thin in the run up to LNY.