The dollar moved briefly higher Tuesday, reversing earlier losses against the Euro and Yen after a the US Institute for Supply Management's manufacturing-sector report was stronger than expected, a pick-up in activity for the first time in five months.
The better than expected ISM figure prompted a brief bout of dollar buying, with the Euro dipping as low as $1.5738 from $1.5780 following the report.
The AUS$ weakened after they kept their interest rates at 7.25 per cent, which was expected, however the very strong retail figures released mounted a strong comeback for the AUS$.
There's also talk of decoupling between the Euro area and US but this is too early to say, says FED vice chairman Donald Kohn.