The Australian dollar has climbed back above 104 US cents and extended gains versus the Japanese yen during the overnight offshore session.

At 0700 AEST on Tuesday, the Australian dollar was at 104.12 US cents, up from Monday’s local close of 103.79 US cents.

The local unit also climbed to 103.49 yen, up from 102.28 yen previously.

BNP Paribas currency strategist Vassili Serebriakov said market players were still absorbing news of the planned massive stimulus measures announced by the Bank of Japan and the latest US jobs numbers last week.

“We are looking at FX markets that are I think still reflecting on and digesting the BoJ announcement last week and to a lesser extent the non-farm payrolls report,” Serebriakov said from New York.

“What we are seeing is basically a lot of ongoing pressure on the Japanese yen.”

The US economy added 88,000 jobs in March, which was well below market expectations.

Overnight, the local currency moved between a low of 103.74 US cents and a high of 104.24 US cents.

In economics news on Tuesday, the latest NAB monthly business survey is due for release.

Serebriakov said the main focus for currency markets this week was the publication of Chinese inflation and trade numbers due out on Tuesday and Wednesday, as well as Australian jobs figures due on Thursday.

The Australian dollar has been one of the better performing currencies in recent times, given higher interest rates compared with many of its global peers, and Serebriakov said he expected the local currency to continue to find support.

“The global backdrop is quite positive for the Aussie right now,” Serebriakov said.

AAP