The Australian dollar firmed on Monday after investor appetite for risk boosted both commodity prices and the local share market.
At the local close, the dollar was trading at $US0.8085, up from Friday's close of $US0.7997.
During the domestic session, the unit moved between a low of $US0.8005 and a high of $US0.8094.
"It's picked up a bit in the course of the day, partly in tandem with the domestic equity market, Nomura Australia chief economist Stephen Roberts said.
"There's not an awful lot more driving it.''
The Australian share market ended Monday's local session in positive territory as stronger commodity prices helped drive the resources sector.
The benchmark S&P/ASX200 index closed up 49.5 points, or 1.24 per cent, at 4,050.3 points, while the broader All Ordinaries index gained 51.3 points, or 1.28 per cent, to 4,044.2 points.
On the Sydney Futures Exchange at 1615 AEST, the September share price index contract was 37 points higher at 4,019 on 19,043 contracts.
The Australian dollar is considered a commodity or risk sensitive currency and will move up or down with the price of raw materials.
Elsewhere on Monday, Australia's producer price index (PPI) at the final stage of production fell 0.8 per cent in the June quarter, the Australian Bureau of Statistics (ABS) said.
It was the largest recorded quarterly fall in producer prices since the series began in 1998.
The June quarter decrease was driven by declining prices in the industrial machinery, equipment manufacturing, building construction and electronic equipment manufacturing sectors, the ABS said.
Economists had expected the June quarter PPI to fall 0.2 per cent for an annual rise of 2.9 per cent.
Mr Roberts said the local unit should range trade around $US0.8080 during Monday's offshore session.