Aust dollar lifts in early trade

Local currency rises as American counterpart weakens on shutdown fears.

The Australian dollar is higher against a weaker US dollar as America heads towards a government shutdown because of the failure to pass budget legislation on time.

At 0630 AEST, the local unit was trading at 93.27 US cents, up from 93.08 cents on Monday.

If the US Congress fails to pass legislation before the end of the financial year at midnight (1400 AEST) most government departments will have to close because they won't have the money to pay staff.

Less than 10 hours before the deadline, the Senate voted 54-46 to reject a proposal by House Republicans to work a delay of health care plan into a temporary funding bill.