Investing.com - The Australian dollar held steady against its U.S. counterpart on Tuesday, while the New Zealand dollar gained ground as higher oil prices lent support to the commodity currencies and investors eyed upcoming U.S. data, as well as the Federal Reserve’s policy statement.
AUD/USD was little changed at 0.7719.
Oil prices bounced back on Tuesday thanks to a weaker U.S. dollar, but gains were expected to remain limited as Saudi Arabia, Iran and Koweit all announced output increases, adding to concerns over a global supply glut.
NZD/USD gained 0.45% to trade at 0.6886.
Sentiment on the greenback was vulnerable as traders awaited the Fed’s upcoming policy meeting, due to conclude on Wednesday for hints on the pace and timing of future rate hikes.
Market participants were also eyeing the release of U.S. reports on durable goods orders and consumer confidence, due later Tuesday for further indications on the strength of the economy.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 94.67.