The Australian dollar has gained against the US dollar as investors await the US presidential debate with Republican candidate Donald Trump and Democrats Hilary Clinton.
At 0700 AEST on Tuesday, the local unit was trading at 76.35 US cents, up from 76.18 cents on Monday.
Kathy Lien, managing director of FX strategy for BK Asset Management, said the presidential debate is the market's main focus.
"For currencies, we know that politics can overshadow economics and the first debate between the two main presidential candidates will have a significant impact on the US dollar.
"We expect an active trading session starting this evening with traders in Asia getting the first opportunity to react to the debate results," Ms Lien said in a research note.
The debate is set to take place on Monday night in the US, around 1100 AEST on Tuesday.
CURRENCY SNAPSHOT AT 0700 AEST ON TUESDAY
One Australian dollar buys:
* 76.35 US cents, from 76.18 US cents on Monday
* 76.61 Japanese yen, from 76.82 yen
* 67.85 euro cents, from 67.86 euro cents
* 104.97 New Zealand cents, from 105.13 NZ cents
* 58.84 British pence, from 58.86 pence
BOND SNAPSHOT AT 0700 AEST:
* CGS 5.25pct March 2019, 1.5909pct, steady from 1.5909pct on Friday
* CGS 4.25pct April 2026, 1.97, flat from 1.97pct
Sydney Futures Exchange prices:
* December 2016 10-year bond futures contract at 98.025 (implying a yield of 1.975 per cent), up from 98.020 (1.980 per cent ) on Monday.
* December 2016 three-year bond futures contract at 98.460 (1.540 per cent), down from 98.450 (1.550 per cent).
(*Currency closes taken at 1700 AEST previous local session, bond market closes taken at 1630 AEST previous local session)
