SYDNEY (Dow Jones)--The Australian dollar gained steadily in Asian trade Tuesday as progress in Japan helped lift some riskier assets. After falling steadily in the wake of the Japanese earthquake and subsequent tsunami and nuclear crisis, the Australian dollar has been steadily climbing since Friday morning in Asia. Partly helping the move was a round of intervention from global central banks in the foreign exchange market, which brought a level of certainty to the market. Moreover, with few fresh developments in Libya roiling markets, the Australian dollar was trading Tuesday around its highest level in a week and back above parity with the U.S. dollar. The Australian dollar could push still higher in coming days, said Michael McCarthy, chief market strategist at CMC Markets, noting more certainty should help the risk-sensitive currency. "This is as much about U.S. dollar weakness as it is anything else, and as the markets get more comfortable with Japan and concerned less about contagion in the Middle East, there is some risk being bought," said McCarthy. At 0600 GMT, the Australian dollar was changing hands at US$1.0067, up from US$1.0015 late Monday. Against the yen, it traded at Y81.445, up from Y80.945. McCarthy tipped a move to a range of US$1.0185 to US$1.0200 as possible in coming days, but added that level would serve as strong resistance. While the currency rallied, Australian bonds nudge slightly higher Tuesday. In the interest rate futures market, the three-year bond rose one tick to 94.99, while the 10-year bond increased 1.5 ticks to 94.565. Michael Turner, a strategist at RBC Capital Markets in Sydney, said technicals played a part in the move, especially after the three-year bond had fallen steadily in the past couple sessions. "Anything below 95 at the moment is attractive to be interested in the three-year bond. When you get to this sort of level in three-year bonds, that looks like pretty decent value given there is no end in sight to the issue in the Middle East," said Turner, referencing military action in Libya. Beyond the Middle East, Turner said bonds globally could take cues off of U.K. inflation data due later in the global day, in addition to the minutes from the last Bank of England meeting. More locally, the state government of South Australia on Thursday will issue a new 2014 benchmark bond in an offer Westpac expects to be strongly bid, given increased demand for state government bonds over the past three months. The bonds carry a coupon of 5.25%. -By Geoffrey Rogow, Dow Jones Newswires; +61-2-8272-4686; geoffrey.rogow@dowjones.com

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