The Australian dollar is holding above 90 US cents in late trade as improved confidence in the United States economy boosts riskier assets.
At 1650 AEDT, the Australian dollar was buying 90.52 US cents, up from 89.92 US cents on Friday.
The local currency hit a high of 90.71 US cents and a low of 90.39 US cents during the day's trade.
Market sentiment was not hurt by weak January US industrial output figures, released on Friday, due to the impact of disastrous weather, Westpac chief currency strategist Robert Rennie said.
"The extreme cold and the harmful weather in the US though January and February seemed to have had greater impact on economic data than most economists had thought," he said.
"That leads you to think we may see a slower pace of tapering, that then helps risk sentiment and the US dollar trading on the back foot, that continued to benefit the Australian dollar over the weekend."
Traders are also waiting for the Reserve Bank of Australia to release its February board meeting minutes tomorrow.
