The Australian dollar is higher, getting support from stronger gold, iron ore and copper prices.

At 0700 AEDT on Tuesday, the local unit was trading at 71.88 US cents, up from 71.66 cents on Monday.

David de Garis, senior eocnomist, NAB, said with very little economic data out in the days before Christmas the Australian dollar took its direction from metals prices.

“The Australian dollar has continued on pretty much where it left off yesterday with a slightly higher level against the background of somewhat firmer commodity prices on the day,” he said.

“Overnight markets were initially shaped by the decline in the oil price, with the West Texas Intermediate oil down towards $US34 a barrel level with associated pressure on the oil linked currencies.

“Spanish politics has been a watch point for markets since the weekend with the national election not producing a clear majority for any one party and not an obvious coalition likely to be formed.”

AAP

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