The Australian dollar is firmer following an upbeat business conditions report.
At 1700 AEDT on Tuesday, the Australian dollar was trading at 87.76 US cents, up from 87.05 cents on Friday.
The local currency hit an intraday high of 87.92 US cents during afternoon trade as traders continued reacting to a National Australia Bank survey showing business conditions at the best level in nearly three years.
The result was better than the market had anticipated but the Australian dollar is unlikely to maintain its gains, OZForex chief currency strategist Jim Vrondas said.
"The market has been quite bearish for some time now and a bit of positive news squeezing out some of those weaker short positions," he said.
"It's only natural that we'll get re-tracements like this along the way when the trend is in place like it has been down in the Aussie for some time."
The local currency is expected to fall during offshore trade as the US Federal Reserve Federal Open Market Committee begins a two-day policy meeting which will decide whether to taper its stimulus measures.
"The expectation is that we'll see the Aussie dollar top out," Mr Vrondas said.