$A stronger on weaker $US
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SYDNEY, Feb 19 AAP
February 19 2013, 5:27PM
The Australian dollar is higher against its US counterpart after the greenback sold off against most major currencies during the local session.
At 1700 AEDT on Tuesday, the currency was trading at 103.29 US cents, up from 102.95 cents on Monday.
Commonwealth Bank currency strategist Joseph Capurso said the Australian dollar had strengthened against a weaker US dollar during a quiet Asian session.
"It's mainly just a little bit of US dollar selling; other currencies, as well as the Aussie dollar are stronger against the greenback," he said.
"But when you are talking 20 points (a fifth of a US cent) it's not much of a move, it's been a very quiet day, really."
Mr Capurso said the release of the minutes of the Reserve Bank of Australia's February 5 board meeting had little effect on the local currency on Tuesday.
"They had a very minor impact and it didn't last very long. The minutes didn't really change the market view of monetary policy very much," he said.
He said the release of the minutes of the US Federal Reserve and the Bank of England's most recent board meetings would be the major drivers of currency markets overnight on Tuesday.
He said the publication of the Australian Bureau of Statistics' wage price index for the December quarter could push the Australian dollar lower on Wednesday.
"If those wages surprise with another weak number, you might see a little bit more pricing for further rate cuts and that might put a bit of pressure on the Aussie."
At 1700 AEDT, the Australian dollar was at 96.71 Japanese yen, down slightly from 96.77 yen on Monday and at 77.37 euro cents, up from 77.16 euro cents.
Meanwhile, Australian bond futures weakened following the release of the RBA minutes.
The minutes indicated the RBA would wait to see the effects of recent interest rate cuts before it decides to cut again.
"We were a little bit heavy heading into that and then sold of a bit afterwards," RBC Capital Markets fixed interest strategist Michael Turner said.
At 1630 AEDT on Tuesday, the March 10-year bond futures contract was trading at 96.440 (implying a yield of 3.560 per cent), down from 96.445 (3.555 per cent) on Monday.
The March three-year bond futures contract was at 97.090 (2.910 per cent), up from 97.080 (2.920 per cent).
By Evan Schwarten