A rise in commodity prices has helped push the Australian dollar back above the 103 US cent level.
At 1700 AEST on Friday, the local unit was trading at 103.10 US cents, up from 102.46 cents on Wednesday.
CMC Markets foreign exchange dealer Tim Waterer said the currency was benefiting from a rise in commodity prices.
"We're seeing a pretty good bounce back by gold this week, and crude oil is up a bit as well and equities have been going along quite well," he said.
"That is sapping some US dollar demand and leaving the door open for the Australian dollar to push above 103 cents."
Mr Waterer said the currency had been prevented from rallying further due to growing expectations the Reserve Bank of Australia would cut the cash rate, currently at three per cent, in the next few months.
Speculation of a rate cut intensified after official figures on Wednesday showed inflation in the middle of the central bank's two to three per cent target range.
"That is curtailing some buying in the Australian dollar," Mr Waterer said.
At 1700 AEST, the Australian dollar was at 101.77 Japanese yen, down from 101.97 yen on Wednesday and at 79.15 euro cents, up from 78.79 euro cents.
Meanwhile, Australian bond futures prices were unchanged after traders sat on the sidelines following the ANZAC day public holiday.
Commonwealth Bank head of debt research Adam Donaldson said it had been one of the quiet trading days of the year.
"The defining feature of the day is very little liquidity," he said.
"It's the second quietest day of the year for futures' volumes outside of public holidays."
At 1630 AEST on Friday, the June 10-year bond futures contract was trading at 96.850 (implying a yield of 3.150 per cent), the same level as on Wednesday.
The June three-year bond futures contract was unchanged at 97.410.
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