The Australian dollar opened higher as a fresh bout of US dollar weakness and firmer commodities prices pushed the local currency towards 105 US cents.
At 7am AEST the dollar was at 104.90 US cents, up from yesterday’s local close of 104.24 US cents.
During the overnight offshore session, the local unit traded between a low of 104.14 US cents and a high of 105.09 US cents.
Bank of New Zealand currency strategist Mike Jones said an upbeat night on global equity markets lifted risk sentiment and prompted investors to buy currencies such as the Australian and New Zealand dollars.
Mr Jones said higher commodities prices - oil, gold and copper futures contract prices all settled firmer in New York trading - also lifted demand for the Australian dollar.
“It a positive backdrop for the Aussie dollar, which is flirting once again 105 US cents level this morning,'' Mr Jones said.