The Australian dollar rose in late trading on Thursday after easing lower throughout the day on mounting bets that the US will hike rates sooner than expected and that the next move in Australian rates will be down rather than up.
The Australian dollar is hovering below 94 US cents as investors wait on a speech by Reserve Bank governor Glenn Stevens. At 1200 AEST on Tuesday, the local currency was trading at 93.76 US cents, down from 93.92 cents on Monday.
The Australian dollar reached 94.24 US cents overnight, it's highest level in almost two weeks, after figures from the US Labour Department showed higher petrol prices were the main reason why the consumer price index rose 0.3 per cent in June.
The Australian dollar edged slightly lower on Monday as investors' focus shifted from the long-term fallout from last week's Malaysia Airlines tragedy to expectations of broadly in-line quarterly inflation figures this week.