The Australian dollar has continued to climb against the US dollar, which traded lower against most of the major currencies in the wake of a softer manufacturing sector report.

At 0700 AEDT on Tuesday, the local unit was trading at 76.25 US cents, up from 76.00 cents on Monday.

The Empire State index fell further into negative territory in October, dropping for the third month in a row, hitting its lowest level since May to suggest a deeper contraction in manufacturing activity in the New York region.

The weakness in the greenback aided the Australian dollar, which stayed above 76 US cents.

“(The) AUD and NZD have been surprisingly strong but outside of carry, their gains aren’t warranted in light of a rising US dollar,” BK Asset Management’s Kathy Lien said.

AAP

Access exclusive analysis, locked news and reports with Inside Retail Weekly. Subscribe today and get our premium print publication delivered to your door every week.