The Australian dollar is higher amid signs of a deal that could end the United States political stalemate.
At 0630 AEDT on Friday, the local unit was trading at 94.57 US cents, up from 94.08 cents on Thursday.
European stock markets have soared and US stocks opened strongly higher on signs of a deal in Washington to avoid a possible US debt default.
Republican leaders said they would offer President Barack Obama a temporary deal to raise the debt ceiling in exchange for budget negotiations.
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