Australian dollar just keeps rising, sets new record

THE dollar has risen to another fresh post-float high, finishing over half a US cent higher from the previous local day session.

At 5pm (AEDT) today, the local unit was trading at 103.28 US cents, up from yesterday's local close of 102.67 US cents.

Since 7am (AEDT), the currency traded between 102.72 US cents and at a new post-float high of 103.31 US cents.

The previous record high was 103.15, set on Monday night in early European trading.

OZForex senior foreign exchange manager Jim Vrondas said the domestic currency has been well supported recently, mainly by events overseas.

The main focus had been on Europe, with expectations that the European Central Bank would raise its cash rate when it met next week, he said.

"I think it's continued upside momentum that we've seen in the last few days," Mr Vrondas said.

"The expectation is that risk is back on the table and the Aussie is obviously benefiting because of that."

The focus may return to domestic news tomorrow as the Australian Bureau of Statistics publishes retail sales and building approvals data for February.

"Retail sales is not expected to show too much change, although building approvals are expected to rebound from its previous result," Mr Vrondas said.

"I do think on the bigger picture, the Aussie has been driven by what's happening with the US dollar, the yen and what's happening in Europe as well.

"Domestic issues have continued to take a back seat at the moment."

Mr Vrondas said he expected the local unit to test 103.50 US cents during the offshore session.

"We're in somewhat unchartered territory.

"But we've broken through that 103 US cents level quite clearly and the next level is 103.50 US cents and I'd expect some resistance there."

The Reserve Bank of Australia's (RBA) trade weighted index (TWI) was at 76.4, up from 75.8 yesterday.

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