The Australian dollar has risen as investors hunt for yield and amid a general lack of dovish comments from the Reserve Bank.

At 0700 AEST on Tuesday, the local unit was trading at 75.70 US cents, up from 75.51 cents on Monday.

BK Asset Management managing director of FX strategy Kathy Lien said the Aussie and New Zealand dollars were higher against the greenback, and showing signs they could be set to rally more strongly.

“These two currencies have been very strong despite mixed economic data,” she said in a note.

“The only explanation is their generous yield and the lack of excessively dovish comments from the Reserve Bank of Australia and the Reserve Bank of New Zealand.”

The main risk event on Tuesday is the release of official building approval figures for July.

AAP

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