The Australian dollar is half a US cent higher ahead of an expected announcement by the US central bank of more economic stimulus.
At 1700 AEDT on Wednesday, the local unit was trading at 105.32 US cents, up from 104.82 cents at Tuesday's close.
Since 0700, it has traded between 105.23 US cents and 105.41 cents.
Westpac chief currency strategist Robert Rennie said a disappointing consumer sentiment survey on Wednesday, and a very weak survey of business confidence on Tuesday, had failed to curb the Aussie dollar's strength.
"We were very disappointed yesterday in the NAB (National Australia Bank) business survey yesterday, and we had fairly disappointing consumer sentiment data today," he said.
"Despite that, the Aussie continues to hold above 105 (US cents), and I think that's driven by a sense that a Greek crisis has been averted, France and Germany look like they've overcome issues surrounding banking regulations, and we've had mixed sentiment around the US fiscal situation.
"But I think the biggest driver is the expectation that the Fed (US Federal Reserve) at the end of their meeting, will offer up a fresh round of quantitative easing."
The Westpac/Melbourne Institute Index of Consumer Sentiment fell back by 4.1 per cent to 100.0 in December, which showed that there were an equal number of optimists and pessimists about the economy among those surveyed.
This followed the NAB monthly business survey released on Tuesday, which revealed business confidence had slumped to its lowest level since April 2009.
The US Federal Reserve's Federal Open Markets Committee will conclude its meeting early on Thursday morning, Australian time.
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