THE Australian dollar closed higher today, breaking through the $US0.9200 mark after a fresh bout of US dollar weakness during the offshore session.
At 5pm (AEDT), the Australian dollar was trading at $US0.9202, up from yesterday's close of $US0.9179.
Between 7am (AEDT), and the local close the unit moved between $US0.9196 and $US0.9242.
The Australian dollar firmed during offshore trade and opened the trading day at $US0.9229, the strongest start to the local session since January 20.
The unit rose on US economic data which showed prices paid by producers for goods fell 0.6 per cent in February, its steepest drop in seven months.
That pushed the US dollar index, which measures the spot price of the US dollar against a basket of currencies below the key 80 level.
Although the Australian dollar drifted back slightly during the day, the currency managed to hold above $US0.9200.
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Custom House Global Foreign Exchange head of foreign exchange Tim Connors said the Australian dollar drifted along in a subdued local session.
"Today Australian time we've had such a lack of data and direction from the market in general," Mr Connors said.
"The equities markets had some moderate gains, the commodities markets had some moderate falls."
Mr Connors said the focus tonight's (AEDT) offshore session was expected to be on the release of the US consumer price index report for February.
"That's a fairly major figure," Mr Connors said of the data.
"If that is a strong figure, then we may see some further support for the US dollar."
"That might push the US dollar index back through that resistance level at 80."
Other US economic data included jobless claims for the week ending March 13, as well as the Philadelphia Federal Reserve manufacturing survey for March and leading indicators survey for February.
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