Aussie steadies as oil-fuelled risk rally offsets weak domestic surveys

The Australian and New Zealand dollars retained most of their overnight advances on Tuesday, as lower oil prices lifted demand for riskier assets. The Aussie was down 0.1% at $0.6916 after gaining 1% overnight, while the kiwi held at $0.5633 following a 1.6% rise.

Business Recorder reported that weak Australian surveys pointed to a softer economic outlook: consumer sentiment reached a four-year low in November and business conditions remained negative, their weakest level in six years. The Reserve Bank of Australia has lifted its policy rate to 4.85%, but September core inflation was still 3.6%, above its 2% to 3% target. Lower oil prices also pulled Australian and New Zealand 10-year government bond yields to their lowest levels since late August.