AUD/USD Surges to Seven Week High Near 0.7250 as Iron and Oil Rally

The Australian dollar has surged to a two-month, continuing to defy efforts by the Reserve Bank to talk it down. At 0630 AEDT on Tuesday, the local unit was trading at 72.36 US cents, after soaring to 72.47 US cents at one point, up from 71.74 cents on Monday.

The $A has rebounded about 6 per cent since falling to a seven-year low of US68.27¢ on January 15. The overnight advance came as iron ore extended its recent rally and as oil swung higher.

Iron ore, the whipping boy of commodities last year as world supply overwhelmed demand, has clawed its way back above $US50 a metric ton. Ore with 62 per cent content rallied 6.2 per cent to $US51.52 a dry ton on Monday, the highest level since October 27, according to Metal Bulletin. The commodity has jumped 18 per cent this year after plunging to $US38.30 in December, the lowest in more than six years.