$A bounces back after Fed comments Losses increased in US markets but the Aussie dollar stabilized to hold its value. The Australian dollar has made gains overnight, buoyed by comments from US Federal Reserve presidents warning investors to stop over-reacting to a possible stimulus wind-down. At 0700 AEST on Tuesday, the local unit was trading at 92.49 US cents, up from 91.67 cents on Monday. The local currency hit 91.48 US cents on Monday - its lowest point since September 2010 - after a Chinese bank cut its growth forecast for the world's second biggest economy based on weaker-than-expected figures for last year. Westpac New Zealand senior market strategist Imre Speizer said the Australian dollar's bounce overnight may have been driven by the comments of two Federal Reserve presidents. He said the comments calmed investors after chairman Ben Bernanke last week flagged a possible paring back of the central bank's economic stimulus program which saw global currencies dive against a surging US dollar. "The Fed speakers suggested that this knee-jerk reaction to tapering is overdone," Mr Speizer said. It was, basically, three Fed speakers saying `you've overdone the reaction' and markets probably backtracked somewhat because of that. Mr Speizer said the local currency was likely to continue upwards to 93 US cents as the market awaits a raft of economic data from the US on Tuesday night, Australian time, including new home sales for May and June consumer confidence figures. It's going to be a quiet day news-wise, which means the market will move around on sentiment alone and the sentiment of the last 12 hours is positive. So, I'll expect the Aussie to continue climbing a little bit more," he said