The Australian dollar is trading higher against its U.S. rival during Tuesday’s following another strong day for U.S. stocks, a sign that risk appetite is alive and well in global financial markets.

In Asian trading Tuesday, AUD/USD is higher by 0.18% at 1.0299. The pair was likely to find support at 1.0193, the low of March 5 and has moved past resistance at 1.0284, the high of the March 8 session.

The Aussie, one of the so-called riskier currencies, for its correlation to commodities prices, has displayed an intimate correlation to U.S. stocks over the past several years. In part, it is rising equity prices in markets outside of Australia that have lifted the Aussie in recent days.

The Aussie is also showing resilience following some slack data points released by China over the weekend. China's industrial production rose 9.9% in February, below expectations for a 10.5% increase also below a 10.3% hike logged during the previous month. Consumer prices in China rose by 3.2% in February from a year earlier, above expectations for a 3% increase and accelerating sharply from a 2% rate of increase in January. Continue Reading....