The Australian dollar is back above 94 US cents, getting a boost from better than expected US retail sales figures.

At 0700 AEST on Tuesday, the local unit was trading at 94.23 US cents, up from 93.86 cents on Monday.

US retail spending rose 1.1 per cent in March, the largest monthly gain in 18 months.

BK Asset Management managing director Kathy Lien said the US dollar had a weak reaction to the retail data, which helped support the Australian dollar.

“After a one-day respite, the Australian dollar resumed its rise against all major currencies.

“There was no Australian economic data released (on Monday) but the lack of upside momentum in the greenback helped to fuel the rally.

“Today’s stronger-than-expected US retail sales report should have been overwhelmingly positive for the greenback and while we did see the dollar appreciate against the euro, it held steady against the Japanese yen and other major currencies after the release.”

The focus for financial markets on Tuesday will be the release of the minutes of the Reserve Bank of Australia’s April board meeting.

Ms Lien said she expects the minutes to be a positive for the Australian dollar, based on the short statement released after the meeting on April 1.

“The RBA did not mention that the exchange rate was uncomfortably high and instead described it as only high by historical standards which investors interpreted as positive for the currency,” she said.

“As long as this tone is maintained in the minutes, the Australian dollar could make another run for fresh five-month highs versus the US dollar.”

AAP