The Australian dollar is still gaining against the greenback after oil prices jumped overnight.

At 0700 AEDT on Tuesday, the local unit was trading at 76.05 US cents, up from 75.96 cents on Monday.

Westpac senior market strategist Imre Speizer said global sentiment had been lifted by news that Russia will join OPEC’s oil production cut with Brent crude prices rising 2.5 per cent to a 12-month high.

The rise in oil prices lifted the US dollar and bond yields, but it also supported the Aussie, which crept higher.

“Last week’s decline has stalled, leaving the Australian dollar in a more neutral state today,” Speizer said in a note.

“We suggest a 75.50-76.50 US cent range.”

The main risk event for the local currency on Tuesday is the release of Australia’s official housing finance statistics for August.

AAP

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