THE dollar was two thirds of a US cent higher after official figures showed the local economy avoided a recession in the June quarter.
At 5pm (AEST) today, the dollar was trading at 106.06 US cents, up from 105.39 US cents on yesterday.
Since 7am (AEST) today, the local unit traded between 104.84 US cents and 106.10 cents.
Gross domestic product (GDP) data, released this morning, showed the local economy returned to growth after it shrank earlier in the year when natural disasters over the summer closed coal mines in Queensland and reduced exports.
June quarter GDP showed a rise of 1.2 per cent in the June quarter, the Australian Bureau of Statistics reported.
The ABS revised its March quarter GDP to a 0.9 per cent decline from the 1.2 per cent fall originally reported three months ago.
CMC Markets senior FX dealer Tim Waterer said the GDP result was good news for the dollar.
"To come in at 1.2 per cent with an upward revision to the previous reading was certainly a shot in the arm for the Australian dollar," he said.
"That saw it on a nice upward trajectory for most of the day.
"It was quite a timely GDP result given the recent growth concerns."
Mr Waterer the local unit could again come under pressure because of European government debt concerns and global growth worries.
"There's still quite a number of bad news stories about, which could at the drop of a hat could change market sentiment."
Mr Waterer said markets would be focusing on the release of German industrial production data for July.
He said a lacklustre reading could put the euro under pressure and probably the Australian dollar as well.
Tomorrow, the ABS releases August employment data.
It is expected to show 12,000 jobs were added in the month and the unemployment rate fell to 5.0 per cent, an AAP survey of 13 economists shows.
The RBA's trade weighted index was at 76.4, up from 75.7.
