The Australian dollar hovered close to its highest level of the year on Tuesday, with the central bank set to hold policy steady later and traders focussed on any hints of potential near-term easing.
Most Asian stocks rose slightly on Monday amid persistent cheer over lower interest rates, while Australian markets lagged as major retail stocks fell sharply in the face of an antitrust lawsuit.
Oil prices rose on Monday, buoyed by concerns that heightened conflict in the Middle East may curtail regional supply and expectations last week's outsized U.S. interest rate cut will support demand.
Most Asian currencies moved in a tight range on Monday, while the dollar steadied from recent losses as traders awaited a slew of more cues on the Federal Reserve and U.S. inflation.
Asian shares extended their rally on Friday, bathing in the afterglow of an outsized interest rate cut in the United States, while the yen edged higher as the Bank of Japan held rates steady and stayed upbeat on the economy.
Oil prices fell slightly in Asian trade on Friday as traders locked-in recent profits, with crude headed for a weekly gain as a bumper U.S. interest rate cut helped quell some fears of slowing demand.