The Australian dollar has rallied to its highest level in 11 days following gains on global share markets.
The currency rose to 103.60 US cents early today, its highest level since April 19. By 7am AEST it had dropped back slightly and was trading at 103.51 US cents, up from 103.24 US cents at yesterday’s local close.
Bank of New Zealand currency strategist Mike Jones said the currency had benefited from positive sentiment across financial markets overnight. He said share markets in the US and Europe rallied while commodity prices pushed higher.
“It's been a relatively upbeat night in markets and that sentiment has certainly spilled over into the Aussie dollar,'' he said.
Mr Jones said encouraging US housing data and expectations the European Central Bank will cut its key interest rate this week lifted the mood of markets overnight.
