The Australian dollar has opened firmer for the first time in more than two weeks, with an improvement in key commodity prices ending an eleven-day losing streak.
At 0700 AEST, the Australian dollar was trading at $US0.8742/47, up from yesterday's close of 0.8698/01.
This was the first time the domestic currency had begun the local session in a stronger position since July 29, when the Australian dollar opened at $US0.9569.
During the overnight offshore session, the Australian dollar traded between a high of $US0.8772 and a low of 0.8637.
The Australian dollar, which sunk below $US0.8600 during yesterday's domestic session for the first time since January 22, made overnight gains as recovering gold, base metal and crude oil prices helped the commodities-driven unit.
"We remain very oversold and with commodity markets bouncing back, the Australian dollar has bounced back a bit," Deutsche foreign exchange strategist John Horner said.
Gold prices ended an eight-session losing streak, putting on $US16.90 to finish at $US831.50 an ounce on the New York Mercantile Exchange.
Light sweet crude oil prices also improved for the first time in four sessions, jumping by $US2.99 to $US116 a barrel, on US government reports of declining supply levels.
Mr Horner said the Australian dollar's recovery was likely to be shortlived, with a resilient US currency having the potential to push the local unit down to $US0.8500 in coming weeks.
"(The US dollar) remains resilient not because of good news but because it's not as bad as some had been fearing," he said.
"There are more expectations for growth elsewhere to be onto a lower path.
"We think there's been a souring of sentiment on the path of the global economy.
"That should see the Australian dollar remain under pressure over coming weeks."
The Australian dollar is expected to face further selling pressure today if the euro struggles against the US dollar.
