The Australian dollar is higher despite better than expected economic data out of the US.

At 0700 AEST on Wednesday, the local currency was trading at 93.06 US cents, up from 92.94 cents on Tuesday.

US business orders for long lasting manufactured goods shot up by the largest amount on record in July, but most of the strength came from demand for commercial aircraft, which tends to fluctuate sharply from month to month. Outside of transportation, orders dipped.

Consumer confidence increased for a fourth straight month in August, but price gains in the US housing market slowed further in June as pent up buying pressure eased.

US economic releases overnight were generally better than expected, said National Australia Bank global co-head of FX strategy Ray Attrill.

But that didn’t do much to help the greenback, he said.

“The big dollar is showing a mixed performance, softer versus the Canadian dollar and Australian dollar but softer versus all other G10 currencies,” Attrill said.

“The standout US releases were for consumer confidence and durable goods orders.

“We also had two sets of house price data, both of which slightly disappointed expectations.”

Attrill said the steep fall in iron ore prices was having no impact on the Australian dollar.

AAP