Australian Dollar Rises As Asian Markets Trade Higher

The Australian dollar strengthened against other major currencies in the Asian session on Tuesday, as Asian markets traded higher, though gains are modest, following the lackluster cues overnight from Wall Street.

Investors are cautious as they eye the European Central Bank forum on central banking currently underway in Portugal and an address by Federal Reserve Chair Janet Yellen at an event in London later in the day.

Crude oil delivery for August is currently up by 0.11 percent or $43.49 per barrel. The crude oil price nudged higher, stemming steep recent losses on talk of OPEC's resolve to re-balance oil markets.

Meanwhile, the Australian dollar firmed on news that Chinese industrial profits growth accelerated in May from a year ago.

Data from the National Bureau of Statistics showed that China's industrial profits grew at a faster pace of 16.7 percent year-over-year in May, following a 14.0 percent spike in April.

Monday, the Australian dollar had risen 0.21 percent against the U.S. dollar, 0.67 percent against the yen, 0.31 percent against the euro, and 0.19 percent against the NZ dollar. Meanwhile, the Australian dollar held steady against the Canadian dollar.

In the Asian trading, the Australian dollar rose to 1-week highs of 0.7604 against the U.S. dollar and 85.07 against the yen, from yesterday's closing quotes of 0.7584 and 84.84, respectively. If the aussie extends its uptrend, it may find find resistance around 0.77 against the greenback and 86.00 against the yen.

Against the euro and the Canadian dollar, the aussie advanced to a 6-day high of 1.4718 and a 5-day high of 1.0074 from yesterday's closing quotes of 1.4740 and 1.0046, respectively. The aussie may test resistance around 1.45 against the euro and 1.02 against the loonie.

Against the NZ dollar, the aussie edged up to 1.0422 from yesterday's closing value of 1.0406. On the upside, 1.05 is seen as the next resistance level for the aussie.

Meanwhile, the safe-haven yen fell against its major rivals amid risk appetite.

The yen fell to nearly a 5-week low of 112.08 against the U.S. dollar and nearly a 3-week low of 142.56 against the pound, from yesterday's closing quotes of 111.84 and 142.30, respectively. If the yen extends its downtrend, it is likely to find support around 114.00 against the greenback and 146.00 against the pound.

Against the euro and the Swiss franc, the yen dropped to a 1-month high of 125.36 and a 5-month of 115.29 from yesterday's closing quotes of 125.04 and 115.02, respectively. The yen may test support near 126.00 against the euro and 116.00 against the franc.

Against the New Zealand and the Canadian dollars, the yen slipped to more than 3-month lows of 81.69 and 84.56 from yesterday's closing quotes of 81.51 and 84.44, respectively. On the downside, 82.00 against the kiwi and 86.00 against the loonie are seen as the next support levels for the yen.

Looking ahead, at 4:00 am ET, European Central Bank President Mario Draghi is expected to speak at the European Central Bank Forum on Central Banking, in Portugal.

At 4:30 am ET, Reserve Bank of Australia Assistant Governor Guy Debelle is expected to speak at the Global FX Code of Conduct Launch in Singapore, via satellite.

At 6:00 am ET, Bank of England Governor Mark Carney is scheduled to hold a press conference about the Financial Stability Report, in London.

In the New York session, U.S. S&P/Case-Shiller home price index for April, U.S. consumer confidence index for June, and U.S. Richmond Fed manufacturing index for June are slated for release.

At 11:15 am ET, Federal Reserve Bank of Philadelphia President Patrick Harker is expected to speak about the economic outlook and international trade at the European Economics & Financial Centre, in London.

At 1:00 pm ET, Federal Reserve Chair Janet Yellen will speak on global economic issues at the British Academy 'President's Lecture', in London.