The Australian dollar is higher and may head towards parity with the US dollar on expectations the US Federal Reserve won't wind back its economic stimulus program in 2013.
At 1700 AEDT on Friday, the local unit was trading at 96.27 US cents, up from 95.52 cents on Thursday.
In the early hours of Friday morning, the currency hit a fresh four month high 96.48 US cents.
The US central bank currently buys $US85 billion of US government bond each month, a measure designed to free up money for lending and stimulate the economy.
There was an expectation back in September the program would be wound down, but it is believed the stimulus is still needed because of the two week US government shutdown.
The Australian dollar has broken higher because of US dollar weakness after US budget legislation was passed on Thursday, Easy Forex currency dealer Tony Darvall said.
"We're looking pretty strong here," he said.
"Some people are saying it could be mid-2014 before the Fed tapers and the whole US dollar weakness theme could be a major trend, and that could get the Aussie dollar up to 98 or 99 US cents, even parity has been talked about by a few traders.
"If stocks continue to rally then the Aussie will outperform most currencies, except for the kiwi dollar."
Mr Darvall said the next important economic data release for currency markets will be September non-farm payrolls on Tuesday, the key indicator of US employment growth.The release of the data was delayed because of the US government shutdown.