THE Australian dollar closed firmer today despite giving up some ground during the local session and after touching a two-week high in offshore trade.
At 5pm (AEDT) the Australian dollar was trading at 89.09 US cents, up from 88.81 US cents on yesterday's local finish.
During the day, the local unit traded between 89.03 US cents and 89.53 US cents.
The Australian dollar touched 89.93 US cents during the New York session, the currency's highest level since December 17 when it reached 90.08 US cents.
While Wall Street finished flat, US data showed consumer confidence in the world's largest economy improved for the second straight month, while a separate report showed house prices rose for the fifth month in a row.
The Australian dollar opened at 89.45 US cents, but drifted lower throughout today's Asian session after reports emerged that the US Government was in discussions with lender GMAC about an additional aid package.
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"I think that's been a little bit negative for the Australian dollar,'' Commonwealth Bank of Australia chief currency strategist Richard Grace said.
"It suggests two things - a little bit of negativity for global growth and secondly a little bit of risk aversion back towards the US dollar.''
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