THE dollar opened higher today as a rise in US homes sales gave a boost to growth assets such as equities and commodity-driven currencies.
At 7am (AEST) today, the dollar was trading at $US0.9025/28, up 0.65 per cent from yesterday's close of $US0.8967/70.
Since 5pm, the dollar traded between $US0.8955 and $US0.9035, its highest level since mid-May.
Wall Street ended higher today after a US Government report said new homes sales rose above market forecasts and shipping company FedEx Corporation lifted its profit outlook.
Sales of new homes in the US rose to an annual rate of 330,000 units in June, a 24 per cent rise from a record low of 267,000 in May, the US Department of Commerce said.
May's reading was the slowest annual pace since records began for the series in 1963.
Fedex Corporation raised its earnings outlook for the first quarter and full year.
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The shipping company is considered an indicator of economic activity, so positive news suggests a lift in the US economy.
The Dow Jones industrial average closed up 0.97 per cent, while the broader-based Standard & Poor's 500 index ended 1.12 per cent higher.
Corporate dealer with online currency trader, OzForex, Darren Richardson, said the property data and Fedex's announcement contributed to the overall market confidence.
Mr Richardson said high-yielding assets such as equities and the dollar gained on the lift in market confidence.
"That was on the back of solid market sentiment once again," he said from Toronto.
"It was a case of commodity currencies taking advantage over the last 12 hours in North America."
Mr Richardson forecast the dollar to trade between $US0.8950 and $US0.9050 during today's Asian session.
"We might see some minor profit taking during the Australian session on the gains of the past three business days," he said.
