www.fxserver.com/ THE Australian dollar has consolidated overnight gains to close at its highest level in over three years.
At 1700 AEST the Australian dollar was at $US0.6204/09 from 0.6170/75 at yesterday's close.
The currency's range in trading in the local session took it from a low of $US0.6193 to 0.6215.
ANZ chief dealer Paul McNee said although the range of trading was tight today there was some reasonable interest from Japanese and US investors.
"I think the market is still keen to pick up the Aussie dollar around that 61.90 area," he said.
"We have seen a bit of profit taking though and quite a bit of interest out of the corporate sector today at levels we haven't seen in a few years.
"It's just stalled a little bit this afternoon but it's still looking pretty solid and unless there's marked turnaround in the US dollar we're looking good for a test at the high 62s.
"The move may have to come offshore but it certainly does look very good for that 62.80 level."
The Australian dollar made highs not seen since February 23, hitting $US0.6232 in New York overnight as the US dollar was slammed lower across the board.
Commonwealth Bank currency strategist Alex Schuman said Asian investors had been cautious about the overnight rally and so the local currency had softened slightly in the local session.
Mr Schuman said it was expected that the Australian dollar would trade higher on the back of the latest Consumer Price Index (CPI) figures, based on the view that with inflation at such high levels it would be harder for the RBA to ease interest rates.
The Australian Bureau of Statistics reported the CPI rose 1.3 per cent in the March quarter to be up 3.4 per cent over the year to March.