The Australian dollar has firmed slightly, after a late surge on Wall Street propelled the currency higher despite local building approvals hitting a seven-and-a-half year low.
Around midday, the Australian dollar was trading at $US0.6467, up from Wednesday's close of $US0.6449.
Deutsche Bank foreign exchange strategist John Horner said a late lift on US equities had boosted demand for risk sensitive currencies such as the Australian dollar.
US stocks rallied for a second straight day on Wednesday after reports on robust online holiday spending and a surprise jump in mortgage applications offset some distressing economic data.
The Dow Jones Industrial Average closed 2.1%.
"It started on a firmer footing from the strong performance late in the US equity trading session,'' he said. ``We have given back a bit during our time zone, but overall we are a bit firmer given stronger US equity market performance.''
Mr Horner said the market had had a muted reaction to the 5.4% fall in Australian building approvals during October.
Building approvals fell to 10,730 units in the month, the lowest level since April 2001.
Also, the nation posted its largest trade surplus, $2.952 billion, seasonally adjusted, in October, the Australian Bureau of Statistics (ABS) said on Thursday.
"The Australian dollar was initially a touch weaker on the softer building approvals,'' he said.
For the rest of the local session, Mr Horner said, foreign exchange markets would be quiet ahead of interest rate decisions by the European Central Bank and the Bank of England on Thursday night.
Markets are forecasting the two central banks to slash key lending rates in a bid to stimulate slumping economies.
Meanwhile, the Australian bond market was stronger at noon.
The yield on the Commonwealth Government March 2019 bond was at 4.288%, down from Wednesday's close of 4.335%, while the yield on the June 2011 bond was at 3.473%, down from 3.515%.
On the Sydney Futures Exchange, the December 10-year bond futures contract price was at 95.710, up from Wednesday's close of 95.655, while the December three-year contract price was at 96.485, up from 96.445.
AAP
