The Australian dollar has risen more than half a US cent to a four-month high on signs of a resolution to the United States political stalemate over the debt ceiling.
At 1200 AEDT, the local unit was trading at 95.28 US cents, up from 94.67 cents yesterday.
The Australian dollar has bounced as high as 95.34 US cents, its highest point since June 17, after US Democratic and Republican Senate leaders emerged from negotiations confident they would strike a deal to avert a debt default.
They have three days to come to an agreement on extending the US debt ceiling before the October 17 deadline.
Minutes from the Reserve Bank of Australia's October board meeting were released this morning but all eyes were focused on the US, CMC Markets chief market analyst Ric Spooner said.
"The RBA minutes appear to me to have been fairly neutral," Mr Spooner said.
"There had been some who thought that there might be things in the minutes that might indicate less of an easing bias but the Australian dollar does not seem to be disappointed that that was not the case and that the easing bias is still there.
"The main driver is the US dollar and the outcome of the debt ceiling negotiations."
Mr Spooner said the Australian dollar could be in a win-win situation, regardless of whether the US makes a deal before its debt ceiling deadline.
"If things went wrong in the US then, at least in the short term, we might see some strength against a weakening US dollar," Mr Spooner said.
"But, on the other hand, in what the market obviously considers as the more likely scenario that there will be a resolution, then the Australian dollar might benefit from a bit of risk-on movement."
Meanwhile, bond futures prices were lower.
The December 10-year bond futures contract was trading at 95.855 (implying a yield of 4.145%), down from 95.920 (4.080%) yesterday.
The December three-year bond futures contract was at 96.840 (3.160%), down from 96.900 (3.100%).