THE dollar was close to a three month high at noon, after a strong night on US stock markets sustained the unit through an otherwise quiet domestic session.
At 12:00 (AEST), the dollar was trading at $US0.9280/83, up from yesterday's close of $US0.9260/63.
Since 07:00 AEST, the local unit has moved in a very tight range between $US0.9280 and $US0.9293, with the latter the unit's highest point January 11.
Commonwealth Bank currency strategist Joseph Capurso said a report showing US chain store sales hit an 11 year high in March sent US stocks higher.
Because it is a risk sensitive currency, the local dollar tends to appreciate against the US dollar when there is a gain on stock markets.
"It's been really quiet all morning,'' Mr Capurso said.
"The US chain store sales data buoyed markets in the US.''
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Chain store sales in the US in March were up nine per cent, the strongest sales result since 1999, The International Council of Shopping Centres said.
By the end of the US session, the at the end of the day, the Dow Jones industrial average was 0.3 per cent higher to settle at 10,927.07 points.
The Standard & Poor's 500 index was also 0.3 per cent higher and settled at 1186.44 points.
With no market moving data due for the rest of the domestic session, Mr Capurso said he expected the unit to trade in the same tight range as its morning session.
Sweet incentives lift auto sales in MarchDollar follows shares higher
