The Australian dollar has managed to hold its ground after getting some support from a positive session on European stock markets.

At 0700 AEST on Tuesday, the local unit was trading at 92.40 US cents, slightly up from 92.38 cents on Monday.

Volumes were low because the US markets were closed for the Memorial Day public holiday and London markets were shut for a bank holiday.

However, Westpac senior market strategist Imre Speizer said European stock markets rose after anti Europe parties made strong gains in European Parliamentary elections over the weekend.

Market sentiment was also helped after European Central Bank president Mario Draghi said the bank remains alert to the dangers of euro zone inflation undershooting the central bank’s medium term targets.

“The US dollar was lower in very thin trade despite Draghi’s hints of policy action at the June 5 ECB meeting and the Australian dollar traded to a high of 92.49 US cents,” Speizer said.

“Thin trading conditions should spill over into today’s session with little data or events for the day ahead.”

Speizer said there will be some interest in a raft of US economic data due out during the offshore session on Tuesday night.

The data includes, house price figures for the March quarter, consumer confidence figures for May and manufacturing data, also for May.

AAP