Dollar opens below parity

Wall Street is falling back from record highs overnight as retail markets pose a slight gain. Commsec report

Australian Money Source: Supplied

THE Australian dollar has remained below parity with the greenback as healthy American retail data underpinned strength in the US currency.

At 12pm AEST today, the Australian dollar was trading at 99.77 cents, down almost a quarter of a US cent from yesterday's close of 100 US cents.

The local unit fell last night, and continued to struggle this morning, after US Commerce Department data showed a retail sales jump of 0.1 per cent during April. While the rise was unspectacular, it was more upbeat than market forecasts of a 0.3 per cent drop, boosting the US dollar against most major currencies.

"At the moment, the market's quite sensitive to any sort of positive US news," OzForex chief currency strategist Jim Vrondas said. "We've seen them get long buying US dollars."

Still, Mr Vrondas said, the Australian dollar could briefly rise above parity with the US currency, to 101 US cents tonight, if Treasurer Wayne Swan's sixth budget is less draconian than financial markets expect.

"The expectations are it's going to be relatively tough, but maybe not as tough," he said, adding that traders would "sell on a rally" if the Australian dollar rose above 100 US cents.

The market has overlooked lending finance data for March, showing a 5.8 per cent rise in owner-occupier home loans.

Meanwhile, the Australian bond market was firmer at noon. At 12pm AEST today, the June 10-year bond futures contract was trading at 96.775 (implying a yield of 3.225 per cent), up from 96.750 (3.250 per cent) yesterday. The June three-year bond futures contract was at 97.440 (2.560 per cent), up from 97.410 (2.590 per cent) previously.

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$A opens lower as traders buy US unit

Australian Money Source: Supplied

THE Australian dollar is weaker after a weekend article in the Wall Street Journal convinced traders to snap up the US greenback.

At 0700 on Monday, the Australian dollar was at 100.03 US cents, after falling below parity with the greenback on Saturday morning for the first time in 11 months.

Westpac New Zealand senior market strategist Imre Speizer said a weekend article in the Wall Street Journal, by chief economics correspondent Jon Hilsenrath, sparked a buy-up of the US dollar. The article suggested the US Federal Reserve would wind back its quantitative easing policy of buying of American government bonds.

"There was a rumour that this article would come out on Friday and that rumour caused stampede buying of US dollars against most other currencies," he said, adding that a slowdown in asset market stimulus would hurt risk-appetite currencies like the Australian dollar.

It, in turn, caused the Australian dollar to fall below parity with the greenback - to 99.61 cents - on Saturday morning for the first time since June 2012.

"You should get further reaction to this, so a move towards 99 (US cents) over the next few days would be what I'd expect."

AAP saj/cdh

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$A opens lower as traders buy US unit

Australian Money Source: Supplied

THE Australian dollar is weaker after a weekend article in the Wall Street Journal convinced traders to snap up the US greenback.

At 0700 on Monday, the Australian dollar was at 100.03 US cents, after falling below parity with the greenback on Saturday morning for the first time in 11 months.

Westpac New Zealand senior market strategist Imre Speizer said a weekend article in the Wall Street Journal, by chief economics correspondent Jon Hilsenrath, sparked a buy-up of the US dollar. The article suggested the US Federal Reserve would wind back its quantitative easing policy of buying of American government bonds.

"There was a rumour that this article would come out on Friday and that rumour caused stampede buying of US dollars against most other currencies," he said, adding that a slowdown in asset market stimulus would hurt risk-appetite currencies like the Australian dollar.

It, in turn, caused the Australian dollar to fall below parity with the greenback - to 99.61 cents - on Saturday morning for the first time since June 2012.

"You should get further reaction to this, so a move towards 99 (US cents) over the next few days would be what I'd expect."

AAP saj/cdh

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Australian market opens flat

THE Australian market looks set to open higher following solid gains on Wall Street overnight on positive economic data from Germany and China.

At 0715 AEST today, the June share price index futures contract was up 13 points at 5,205.

In economic news today, The Australian Bureau of Statistics releases labour force data for April, while the Housing Industry Association Trades report for March quarter is also due.

In equities news, News Corp posts third quarter fiscal earnings, National Australia Bank announces its first half results and Billabong is expected to provide details of a possible takeover.

Meanwhile, Rio Tinto, Santos and Caltex have annual general meetings scheduled.

In Australia, the market on Wednesday closed at its best level in almost five years, driven by record US market highs and positive Chinese trade data.

Resources stocks led the Australian market to near the 5200-points level, the highest close since August 2008.

The benchmark S&P/ASX200 index was up 56.1 points, or 1.09 per cent, at 5,199.8 points, while the broader All Ordinaries index was up 55.2 points, or 1.08 per cent, to 5,177.9 points.
 

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Australian market opens flat

THE Australian share market has opened relatively flat despite a positive lead from overseas markets.

Early trading was marked by a drop in National Australia Bank (NAB), after it reported its half year net profit grew by 23 per cent to $2.52 billion.

NAB's cash profit, the bank's preferred measure of underlying performance, was up three per cent to $2.92 billion.
At 1020 AEST, NAB was 45 cents, or 1.35 per cent, lower at $32.92.

Lonsec senior client adviser Michael Heffernan said NAB's results were not as good as those of the other major banks.

"Certainly, the international (market) moves were very positive last night, so you would have thought we would have jumped out of the gate very strongly," Mr Heffernan said.

"But it (the NAB result) has probably put a bit of a dampener on it."

The other major banks were mixed at 1023 AEST. Westpac was up 28 cents to $33.23, Commonwealth Bank had eased nine cents to $71.14, and ANZ, which was ex-dividend, had fallen 99 cents to $30.47.

In the resources sector, global miner BHP Billiton was up 29 cents at $34.59, but Rio Tinto was down six cents to $58.84.

Meanwhile, media giant News Corp was 92 cents higher at $32.49 after its profit in the past quarter tripled to $US2.85 billion ($A2.81 billion), boosted by a one-time gain from its German satellite TV operations, and improvements in cable TV and film operations.

On Wall Street, stocks today continued to climb to new records with investors buoyed by positive German industrial production data and higher Chinese exports.

The Dow Jones Industrial Average jumped 48.92 points, or 0.32 per cent, to 15,105.12 points
 

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Market opens weaker

May day holiday in Europe and US markets under pressure.

THE Australian market has opened lower as lacklustre Chinese manufacturing data impacts mining stocks.

IG market strategist Evan Lucas said the local market was being dragged down by the resources sector as commodity prices drop after disappointing economic data from China.

"The manufacturing data was a bit flat to slightly on the bottom-weak side which has seen commodities pull off and which has seen the materials sector pull back," he said.

The mining giants all opened lower. BHP Billiton fell 20 cents to $31.97, Rio Tinto dropped 36 cents to $54.67 and Fortescue lost two cents to $54.67. Oz Minerals dived seven cents, or 1.69 per cent, to $4.06 and Newcrest tumbled 20 cents, or 1.22 per cent, to $16.25.

The four major banks also had a negative start after recent gains. ANZ lost 15 cents to $31.54, National Australia Bank dropped 11 cents to $33.84, Westpac fell eight cents to $33.98 and Commonwealth Bank tumbled 27 cents to $72.68.

Flight Centre shares were up $1.74, or 4.56 per cent, to $39.91 after the travel company upgraded its full year guidance from $305 million to $315 million, to between $325 million and $340 million.

GrainCorp shares lifted six cents, or 0.47 per cent, to $12.87 after it announced due diligence regarding its takeover by Archer Daniels Midland (ADM) was completed.

US stocks tumbled yesterday following weak employment and manufacturing data, and as the Federal Reserve stuck to its aggressive economic stimulus program. The Dow Jones Industrial Average lost 138.85 (0.94 per cent) to 14,700.95.

KEY FACTS

* At 10.22am AEST today, the benchmark S&P/ASX200 index was down 21.1 points, or 0.41 per cent, at 5145.1 points.

* The broader All Ordinaries index was also down 21.4 points, or 0.42 per cent, at 5122.5 points.

* The June share price index futures contract was 24 points lower at 5,137 points, with 6796 contracts traded.

* National turnover was 296.4 million securities worth $466.95 million.

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Australian share market opens higher

US markets ended mixed with weak economic growth in the first quarter of 2013.

THE Australian market has opened higher, led by gains for the four major banks.

IG markets strategist Stan Shamu said the local market has been dragged higher by the major financial stocks, and the mining giants did not fall as hard as expected after recent drops in commodity prices.

"It's all about the banks' upcoming earnings," he said.

"Everyone's starting to position themselves for what could be another round of increases in dividend growth from these banks.

"At the same time the miners haven't disappointed quite as much as expected at open."

Commonwealth Bank jumped 60 cents to $71.44, Westpac surged 37 cents to $32.94, ANZ gained 19 cents to $30.07 and National Australia Bank added 19 cents to $30.07.

ANZ and Westpac are due to post half-yearly results this week.

BHP Billiton fell 28 cents to $32.30, Rio Tinto dived 48 cents to $55.32 and Fortescue dropped two cents to $3.55.
Tabcorp shares gained five cents, or 1.5 per cent, to $3.39 after the betting firm reported a 2.6 per cent lift in third quarter revenue to $480.3 million.

OceanaGold March is expected to post its quarter financial and operational results later today.

In economic news, BHP Billiton, Rio Tinto, Xstrata and Minerals Council of Australia will appear before the Senate Economics Legislation Committee's public hearing into the development and operation of the Minerals Resource Rent Tax (MRRT).

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Australian share market opens higher

US markets ended mixed with weak economic growth in the first quarter of 2013.

THE Australian stock market looks set to open flat following a mixed performance on Wall Street overnight after a mediocre report on US economic growth and the latest batch of uneven corporate earnings reports.

At 0712 AEST today, the June share price index futures contract was down three points at 5,104.

In economic news today, presentations by BHP Billiton, Rio Tinto, Xstrata and Minerals Council of Australia will feature in the Senate Economics Legislation Committee's public hearing into the development and operation of the Minerals Resource Rent Tax.

In Australia, the market closed on Friday slightly lower despite commodity stocks staging a comeback.
 

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Market opens lower after Wall St falls

THE Australian stock market looks set to open lower after a negative finish on Wall Street and slumping commodities prices.

At 0709 AEST today, the June share price index futures contract was 33 points lower at 4,969 points, with 4,420 contracts traded.

In New York yesterday, the Dow Jones Industrial Average fell 0.94 per cent to 14,618.59 points, while the broad-based S&P500 slid 1.43 per cent to 1,552.01.

Meanwhile, the tech-heavy Nasdaq Composite Index ended down 1.84 per cent at 3,204.67.

Futures contract prices for key commodities such as oil, gold and copper all settled lower in offshore trading.

In economics news on Thursday, the NAB business survey for the March quarter will be released.

Also, the Australian government will auction $1 billion of Treasury Notes.

In companies news, quarterly production reports from Fortescue Metals Group, Woodside Petroleum and Iluka are due for release.

Bank of Queensland and Australian Pharmaceutical Industries publish their interim results, while Wesfarmers will release third quarter retail sales figures.

Today, the benchmark S&P/ASX200 index rose 1.09 per cent to 5004.6 points, while the broader All Ordinaries finished 1.00 per cent higher at 4,993.6 points.

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Australian sharemarket opens higher

THE Australian sharemarket has opened firmer after markets in the United States pushed to new highs.

On Wall Street overnight, investors were buoyed by a government report pointing to lower-than-expected jobless claims.

The Dow Jones Industrial Average climbed 62.9 points, or 0.42 per cent, to 14,865.14.

IG Markets market strategist Stan Shamu said the local bourse had taken its lead from the continued upward momentum of US markets.

"That sharp drop in unemployment claims (in the US) was quite impressive," Mr Shamu said.

"That really helped US markets, and, in turn, Australian equities are benefiting from this as well."

In the resources sector at 1019 AEST, Woodside Petroleum was 99 cents higher at $36.27 after it dumped plans for its controversial $45 billion liquefied natural gas project at James Price Point in Western Australia.

Woodside will review alternative ideas with its joint-venture partners in the Browse project.

Mr Shamu said analysts had believed that Woodside may have had to raise capital if the Browse project went ahead in its current form, so the fact that it was reconsidering the project was seen as positive for the moment.

Global miner BHP Billiton was 12 cents lower at $33.28, and Rio Tinto dumped 80 cents to $57.23.

Engineering and asset management firm Calibre Group plummeted 61 cents, or 50.41 per cent, to 60 cents after it issued a profit warning, citing challenging market conditions.peAmong the major banks, ANZ was 17 cents higher at $28.86, Commonwealth Bank rose 38 cents to $68.43, National Australia Bank climbed 10 cents to $31.70, and Westpac dipped three cents to $31.50.

KEY FACTS

- At 1027 AEST on Friday, the benchmark S&P/ASX200 index was up 10.4 points, or 0.21 per cent, at 5,017.5 points.

- The broader All Ordinaries index was up 9.4 points, or 0.19 per cent, at 5,019.7 points.

- The June share price index futures contract was up three points at 5,014 points, with 6,668 contracts traded.

- National turnover was 233.9 million securities worth $434.3 million.

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Aussie dollar opens higher

THE Australian dollar has opened higher, rebounding strongly from a disappointing domestic jobs report.

At 7am AEST today, the Australian dollar was at 105.36 US cents, up from yesterday's local close of 105.21 US cents.

The local currency has bounced back after falling near 105 US cents yesterday, when figures showed the nation's unemployment rate rose to a three and a half year high of 5.6 per cent in March.

It recovered lost ground during the offshore session, climbing to 105.8 US cents in European trading before drifting back a bit heading into the start of the local trading day on some profit-taking.

"It has done all right considering the jobs data," Westpac New Zealand senior market strategist Imre Speizer said.

"In fact, where we are right now at 105.39 US cents, it is about where it was before the jobs data was released yesterday.

"Sentiment and some Chinese data has helped lift it back to where it was."

The Australian dollar continued to rise ahead against the Japanese yen in response to stimulus measures announced by the Bank of Japan last week.

At 7am AEST, the local unit was at 104.99 Japanese yen, up from 104.84 yen previously.

With little to offer direction for currency markets in Australia or Asia on Friday, the dollar was expected to trade near current levels for most of the Asian session.

"The next significant set of events will not be until the US data tonight," Mr Speizer said.

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Aussie dollar opens higher

THE Australian dollar has opened higher, rebounding strongly from a disappointing domestic jobs report.

At 7am AEST today, the Australian dollar was at 105.36 US cents, up from yesterday's local close of 105.21 US cents.

The local currency has bounced back after falling near 105 US cents yesterday, when figures showed the nation's unemployment rate rose to a three and a half year high of 5.6 per cent in March.

It recovered lost ground during the offshore session, climbing to 105.8 US cents in European trading before drifting back a bit heading into the start of the local trading day on some profit-taking.

"It has done all right considering the jobs data," Westpac New Zealand senior market strategist Imre Speizer said.

"In fact, where we are right now at 105.39 US cents, it is about where it was before the jobs data was released yesterday.

"Sentiment and some Chinese data has helped lift it back to where it was."

The Australian dollar continued to rise ahead against the Japanese yen in response to stimulus measures announced by the Bank of Japan last week.

At 7am AEST, the local unit was at 104.99 Japanese yen, up from 104.84 yen previously.

With little to offer direction for currency markets in Australia or Asia on Friday, the dollar was expected to trade near current levels for most of the Asian session.

"The next significant set of events will not be until the US data tonight," Mr Speizer said.

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Australian sharemarket opens higher

European and US markets added to yesterday's gains.

THE Australian stockmarket looks set to open firmer after Wall Street posted fresh highs during offshore trading.

At 7.06am AEST today, the June share price index futures contract was 11 points higher at 5022 points, with 3792 contracts traded.

US stocks pushed to new record levels overnight after the government's weekly report on jobless claims came  in better than expected.

The Dow Jones Industrial Average jumped 62.90 points, or 0.42 per cent, to 14,865.14, while the broad-based S&P 500 rose 5.64 points, or 0.36 per cent, to 1593.37.

Both the Dow and the S&P 500 set new all-time highs for the second day in a row overnight.

The tech-rich Nasdaq Composite Index rose 2.90 points, or 0.09 per cent, to 3300.16.

In local economics news today, the Australian Office of Financial Management will sell $600 million of Commonwealth Government bonds with a maturity date of October 21, 2015.

Yesterday, the benchmark S&P/ASX200 index rose 0.79 per cent to 5007.1, while the broader All Ordinaries finished 0.74 per cent higher at 5010.3.

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Dollar opens higher

THE Australian dollar has 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 today, the Australian 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. "It certainly was broad US dollar weakness that boosted the Aussie overnight."

Wall Street closed firmer - the Dow climbed 0.4 per cent and the S&P500 advanced 0.35 per cent - while stock markets in Europe also posted gains.

Mr Jones said the release of Chinese trade figures today was expected to be the main focus for markets.

In local economic news, Reserve Bank of Australia assistant governor of economics Christopher Kent will speak at the Bloomberg Australia economic summit in Sydney today.

The Westpac-Melbourne Institute's monthly survey of consumer confidence will be released.

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Dollar opens higher

THE Australian dollar has 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 today, the Australian 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. "It certainly was broad US dollar weakness that boosted the Aussie overnight."

Wall Street closed firmer - the Dow climbed 0.4 per cent and the S&P500 advanced 0.35 per cent - while stock markets in Europe also posted gains.

Mr Jones said the release of Chinese trade figures today was expected to be the main focus for markets.

In local economic news, Reserve Bank of Australia assistant governor of economics Christopher Kent will speak at the Bloomberg Australia economic summit in Sydney today.

The Westpac-Melbourne Institute's monthly survey of consumer confidence will be released.

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Australian dollar opens lower

THE Australian dollar has opened lower, dropping below 104 US cents in response to a disappointing US jobs report.

At 0700 AEST today, the Australian dollar is at 103.68 US cents, down from Friday's local close of 104.15 US cents.

The Australian dollar fell against both the US dollar and the euro in New York trading, after figures showed the US economy added 88,000 jobs in March.

The result was well below market expectations of a 190,000 improvement and the slowest monthly gain in nine months.

"After the non-farm payrolls the Australian dollar came immediately under pressure, going down to its lows," HiFX senior trader Stuart Ive said.

"If you look at the Australian dollar against a euro/US dollar chart at the moment, you will see that the euro flew higher after the non-farm payrolls and the Australian dollar got sold off."

At 0700 AEST, the Australian dollar was at 79.92 euro cents, down 0.8 per cent from Friday's local close of 80.59 euro cents.

Some technical trading had also led to Australian dollar weakness against the US dollar and euro, Mr Ive said.

However, the massive stimulus plan announced by the Bank of Japan last week continued to push the Australian dollar to fresh highs against the Japanese yen and levels last reached in the 1990s.

At 0700 AEST, the Australian dollar was at 101.83 yen, up 1.5 per cent from 100.35 yen previously.

In economics news on Monday, the Australian Industry Group-Housing Industry Association performance of construction index for March is due for release.

The ANZ job advertisements series for the same month will also be published.
 

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Australian dollar opens lower

THE Australian dollar has opened lower, dropping below 104 US cents in response to a disappointing US jobs report.

At 0700 AEST today, the Australian dollar is at 103.68 US cents, down from Friday's local close of 104.15 US cents.

The Australian dollar fell against both the US dollar and the euro in New York trading, after figures showed the US economy added 88,000 jobs in March.

The result was well below market expectations of a 190,000 improvement and the slowest monthly gain in nine months.

"After the non-farm payrolls the Australian dollar came immediately under pressure, going down to its lows," HiFX senior trader Stuart Ive said.

"If you look at the Australian dollar against a euro/US dollar chart at the moment, you will see that the euro flew higher after the non-farm payrolls and the Australian dollar got sold off."

At 0700 AEST, the Australian dollar was at 79.92 euro cents, down 0.8 per cent from Friday's local close of 80.59 euro cents.

Some technical trading had also led to Australian dollar weakness against the US dollar and euro, Mr Ive said.

However, the massive stimulus plan announced by the Bank of Japan last week continued to push the Australian dollar to fresh highs against the Japanese yen and levels last reached in the 1990s.

At 0700 AEST, the Australian dollar was at 101.83 yen, up 1.5 per cent from 100.35 yen previously.

In economics news on Monday, the Australian Industry Group-Housing Industry Association performance of construction index for March is due for release.

The ANZ job advertisements series for the same month will also be published.
 

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Dollar opens flat

THE Australian dollar has opened flat against the US dollar as market players look ahead to the release of a closely watched US employment report.

At 7am AEDT today, the currency was at 104.37 US cents, little changed from yesterday's local close of 104.41 US cents.

During the offshore session, the local currency moved between a low of 103.87 US cents and a high of 104.53 US cents.

DailyFX senior analyst John Kicklighter said investors were on the sidelines waiting for the US non-farm payrolls report - a key employment indicator.

"US markets are in a holding pattern," Mr Kicklighter said. "A lot of the risk sentiment is on pause right now."

"That's not going to really change until people find out what happens tomorrow with the non-farm payrolls."

Market expectations were for the world's largest economy to have added 190,000 jobs in March, with the unemployment rate tipped to come in unchanged from February at 7.7 per cent.

The US Federal Reserve has said previously a key factor in how long it continues with its quantitative easing program is the state of the US labour market and unemployment rate.

While the Australian dollar was steady against the US dollar, the local unit soared against the yen after Bank of Japan earmarked further measures to stimulate the economy.

At 7am AEDT, the Australian dollar was at 100.41 yen, up 1.6 per cent from 98.86 yen today.

"The yen is just getting naturally pummelled just across the board," Mr Kicklighter said.

Mr Kicklighter said the Australian dollar was expected to trade quietly during the local session, with the non-farm payrolls report due out tonight (AEDT) and a lack of local factors to offer direction for the currency.

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Dollar opens flat

THE Australian dollar has opened flat against the US dollar as market players look ahead to the release of a closely watched US employment report.

At 7am AEDT today, the currency was at 104.37 US cents, little changed from yesterday's local close of 104.41 US cents.

During the offshore session, the local currency moved between a low of 103.87 US cents and a high of 104.53 US cents.

DailyFX senior analyst John Kicklighter said investors were on the sidelines waiting for the US non-farm payrolls report - a key employment indicator.

"US markets are in a holding pattern," Mr Kicklighter said. "A lot of the risk sentiment is on pause right now."

"That's not going to really change until people find out what happens tomorrow with the non-farm payrolls."

Market expectations were for the world's largest economy to have added 190,000 jobs in March, with the unemployment rate tipped to come in unchanged from February at 7.7 per cent.

The US Federal Reserve has said previously a key factor in how long it continues with its quantitative easing program is the state of the US labour market and unemployment rate.

While the Australian dollar was steady against the US dollar, the local unit soared against the yen after Bank of Japan earmarked further measures to stimulate the economy.

At 7am AEDT, the Australian dollar was at 100.41 yen, up 1.6 per cent from 98.86 yen today.

"The yen is just getting naturally pummelled just across the board," Mr Kicklighter said.

Mr Kicklighter said the Australian dollar was expected to trade quietly during the local session, with the non-farm payrolls report due out tonight (AEDT) and a lack of local factors to offer direction for the currency.

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Dollar opens higher

THE Australian dollar has opened firmer, with gains on US and European stock market helping lift the currency near 105 US cents.

At 7am AEDT today, the Australian dollar was at 104.86 US cents, up from yesterday's local close of 104.65 US cents. The local unit reached a high of 104.97 US cents during the overnight offshore session, moving in line with gains on European and US stock markets.

Westpac senior currency strategist Richard Franulovich said the Australian dollar, and its New Zealand counterpart, posted gains in line with the rally on Wall Street.

"A day removed now from the drama of Cyprus and US stocks have climbed back to their highs of late last week and the Aussie and kiwi have ridden on the coat-tails of stocks," Mr Franulovich said.

The Dow was up about 0.8 per cent late in the New York session, while London's FTSE 100 closed 0.3 per cent firmer.

The Australian dollar has risen about 2.7 per cent since reaching a low of near 102 US cents in early March.

Mr Franulovich said while Europe had suffered in response to the banking crisis in Cyprus, non-European markets such as the Australian dollar and US stocks and bonds "had taken it in their stride".

"It has been a major talking point for everyone in all markets but outside of any markets directly linked to Europe you would struggle to see any impact," Mr Franulovich said.

In economics news today, the Reserve Bank of Australia is due to publish its latest financial stability review, which looks at the current condition of the financial system. Separately, RBA board member Jillian Broadbent is speaking at a business lunch in Sydney.

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