THE dollar was higher at noon after a positive night on offshore markets boosted investor hunger for the domestic currency.
At lunchtime (AEST) today, the dollar was trading at $US0.9032/35, up from yesterday's close of $US0.8999/00.
Since 7am, the local currency traded between $US0.9059 and $US0.9028.
Nomura Australia chief economist Stephen Roberts said the unit was continuing to feed off the positive overnight sentiment that saw risk assets such as shares move higher.
"We had quite a reasonable lift running through the evening session, pushing to the Aussie up to its high," Mr Roberts said.
"It's easing back from that a little. There's not much more to it."
Overall output at US factories, mines and utilities rose 1.0 per cent in June, the Federal Reserve reported overnight (AEST).
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That followed a decline of 0.1 per cent in June, the first drop in more than a year.
Also during the session, the US Commerce Department said construction of new homes and apartments rose 1.7 per cent last month.
But the gains were driven by a 32.6 per cent surge in apartment and condominium construction, a small fraction of the market
.
US shares ended a five day losing streak after the news was announced.
The Dow Jones Industrial Average settled up 1.01 per cent at 10,405.85, while the broader S&P 500 index rose 1.22 per cent to 1092.54.
Also during the session the Irish government raised 1.5 billion euro ($2.14 billion) at a bond auction.
The auction pushed the euro higher against most cross rates and saw it peak at 1.2901 US dollars overnight, up from its overnight low of 1.2839.
The bond auction was watched closely overnight because the Irish government has had trouble managing its finances since the Greek financial crisis erupted earlier this year.
At 11.30am today the Australian Bureau of Statistics (ABS) said total hourly rates of pay, excluding bonuses, rose 0.8 per cent in the June quarter, seasonally adjusted.
The wage price index rose 3.0 per cent from a year earlier and was broadly in line with market expectations.
However, Mr Roberts said the local data had no impact on the local unit.
Meanwhile, the debt market was weaker at noon.
At midday today, the yield on the Commonwealth Government April 2020 bond was 4.945, up from yesterday's close of 4.932 per cent, while the May 2013 bond was at 4.480, up from 4.469 per cent.
On the Sydney Futures Exchange, the September 10-year bond futures contract was at 95.055, down from yesterday's close of 95.070, while the September three-year bond futures contract was at 95.440, down from 95.450.
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