THE dollar was one US cent higher at noon today as solid banking results in the US offset concerns about fraud charges against American investment bank Goldman Sachs.
Atmidday (AEST), the dollar was trading at $US0.9261/64, up 1.1 per cent from yesterday's close of $US0.9160/64.
Since 7am (AEST), the local unit has traded between $US0.9232 and $US0.9275.
US banking giant Citigroup posted a profit of $US4.4 billion ($4.77 billion) in the first quarter of this year - its best earnings since early 2007.
The US Securities and Exchange Commission (SEC) voted 3-2 to prosecute Goldman Sachs during Friday's offshore session (AEST) alleging civil fraud.
Wall Street closed higher, with the Dow Jones Industrial Average up 0.67 per cent.
Equity markets in Asia followed the US lead, with Australia's ASX/200 up by 0.26 per cent at 12.18pm (AEST), while Japan's Nikkei-225 index was 0.41 per cent higher.
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"That there was not an unanimous approval in charging Goldman Sachs with fraud, it gave the market some sigh of relief and that help put a floor under the market," Mr Solar said.
"That helped with the Aussie dollar."
Mr Solar said the release of the minutes from the Reserve Bank of Australia's (RBA) board meeting on April 6 gave some support for the local currency.
The central bank lifted the overnight cash rate 25 basis points to 4.25 per cent in April 6.
In the meeting the RBA said the increase in Australia's terms of trade, the ratio of export prices to import prices, in 2010 "was likely to be substantially stronger than forecast in the February Statement on Monetary Policy".
Mr Solar said the RBA minutes gave support to the Australian dollar after indicating another rate hike soon.
"They did not give us a timeline but they said in the period," he said.
"They are pretty much leaving the door open for another rate hike, the fact they thought it was prudent to lift rates in April meant it was it was a line-ball decision.
"It is very positive for the Aussie dollar."
For the rest of Asian trade today, Mr Solar forecast the dollar to move between $US0.9240 and $US0.9300.
Meanwhile, the bond market was weaker at noon.
At midday (AEST), the yield on the Commonwealth Government April 2020 bond was 5.798 per cent, up from yesterday's close of 5.743, while the May 2013 bond was at 5.261 per cent, up from 5.208.
On the Sydney Futures Exchange, the June 10-year bond futures contract was at 94.190, down from yesterday's close of 94.235, while the June three-year bond futures contract was at 94.650, down from 94.690 previously.
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