The Australian dollar is slightly higher on the back of rising commodity prices.
At 0700 AEST on Wednesday, the local unit was trading at 89.84 US cents, up from 89.56 cents on Tuesday.
US oil prices have soared to their highest level in 18 months as threats to punish Syria for alleged chemical attacks raised worries over Middle East crude supplies.
BK Asset Management MD of FX strategy Kathy Lien said the Australian dollar had managed to make small gains despite worries over Syria.
“The only reason the Aussie has seen a little bit of a rally is because oil prices have moved higher but I think the down trend is very much intact,” she said from New York.
“In general though, it seems there is still quite a lot of risk aversion in the market that is keeping a lot of currencies under pressure.”
Lien said the Australian dollar also got some support from better than expected US consumer confidence numbers.
She said the focus for the market will continue to be developments over a possible US attack on Syria.
Ms Lien expects the Australian dollar to trade in a range between 89 and 90 US cents during the local session on Wednesday.
