$A strong on greenback weakness
The Australian dollar has rallied above 94 US cents as the greenback continues to weaken.
At 0700 AEST on Wednesday, the local currency was trading at 94.00 US cents, up from 93.87 cents on Tuesday.
The Australian dollar rallied despite steep declines in US equities overnight, BK Asset Management managing director Kathy Lien said.
The currency was helped by strong data out of the region, following Tuesday's encouraging National Australia Bank business report which showed that business sentiment had lifted one point to an index level of eight in June and business conditions had moved into positive territory, rising three points to two.
"The combination of positive data from the region as well as a decline in US yields is helping the Australian dollar start the Asian trading session strong," Ms Lien said.
"The US dollar is lower against the Australian dollar.
"Reality is setting in and traders realise that even with the strong (US) labour market report last week, it's not going to change the US Federal Reserve's stance.
"There's a good chance that the Federal Open Market Committee minutes will continue to show a steady course from the Fed which is more dovish for the US dollar so you're seeing a bit of liquidation in the dollar as a result of that."
