Australian Dollar Rises Amid Easing U.S. Bond Yields, Vaccine Optimism

The Australian dollar climbed against its major counterparts in the Asian session on Tuesday, following a pullback in U.S. Treasury yields, as well as on comments by Australian Prime Minister Scott Morrison that the country's Covid-19 vaccination drive is on track to attain targets.

U.S. House Speaker Nancy Pelosi said that the chamber will approve the $1.9 trillion coronavirus relief bill by Wednesday.

Democrats want the legislation to be passed by Sunday, when the current expanded unemployment benefits run out.

Australian PM Morrison said that the vaccination drive would end by October, as no new cases have been reported for the 11th straight day.

The government is planning to accelerate the immunisation drive, as the country will start the local production of vaccine by the end of the month.

Survey results from the National Australia Bank showed that Australia's business confidence and conditions improved in February.

The business confidence index advanced to 16 from 12 in January. This was the highest reading since early 2010.

The aussie edged up to 0.7686 against the greenback, from a 4-day low of 0.7622 seen at 8:30 pm ET. On the upside, 0.80 is possibly seen as its next resistance level.

The aussie reversed from its early low of 83.15 against the yen, gaining to 83.72. If the aussie rises further, 86.00 is possibly seen as its next resistance level.

The aussie rose to 1.5451 versus the euro, following a decline to 1.5530 at 8:30 pm ET. Immediate resistance for the currency is found near the 1.51 level.

The aussie recovered to 0.9719 against the loonie and 1.0761 against the kiwi, off its prior 2-1/2-month low of 0.9666 and a 4-day low of 1.0710, respectively. The aussie is seen finding resistance around 0.98 against the loonie and 1.09 against the kiwi.

Looking ahead, Eurozone GDP and employment data for the fourth quarter are set for release in the European session.