The Australian dollar was considerably low against the US dollar trading at 91.08 US cents at midday. Yesterday's closing was at 91.53 US cents. The dollar was also buying 83.64 yen, 68.29 euro cents and 61.13 pence. Since 7am, local unit moved between 90.5 to 92 US cents.
Joseph Carpuso, chief currency strategist of Commonwealth Bank said the local unit had rallied after RBA said that the land down under is performing well economically and 'looks brighter' than any other advanced economic countries.
'Dr Lowe was sounding pretty optimistic about Asian economies and what that means for Australia,'' Mr Capurso said.
Earlier today, Dr Phillip Lowe, assistant governor of RBA said to an economic forum in Sydney that many countries are dealing with deficit problem and the ageing population is putting pressure on budgets.
Australia's economy however escaped with minimal impact due to RBA's quick response to changing economic conditions.
Fortunately in Australia we've had the policy flexibility to respond to changing events, and so far this has served us very well.
He also said that while the outlook for Australia remains positive, there are still risks that need to be dealt with.
The RBA also said that it will keep raising interest rates until it reaches the normal level.
The important thing is the level of interest rates that borrowers face, not the cash rate, Dr Lowe said.
The Australian dollar was weak against the US dollar which had two supports - a weaker euro and higher US interest rates.
Mr Capurso said a lack of significant data during afternoon trade would see the local unit maintain its current levels.