Aust dollar hits one-month high

Local currency lifts in early trade as hopes for US budget resolution intensify.

The Australian dollar has bounced to a one-month high amid hopes of a resolution to the US political stalemate over the looming debt ceiling negotiations.

At 0630 AEDT, the local unit was trading at 95.01 US cents, up from 94.67 cents on Monday.

The Australian dollar bounced above 95 US cents, to its highest point since September 19, 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.