Strong commodity prices have helped the Australian dollar extend the rally it started on Tuesday with better-than-expected economic commentary from the Reserve Bank of Australia (RBA).

At 6am (AEDT) on Thursday, the currency was trading at US72.10c, up from US71.85c on Wednesday.

Over the past 24 hours the unit has traded between a low of US71.50c and a high of US72.36c, its best mark since September 18.

The Australian dollar had hit its high early in the session when crude prices were up over 2 per cent, with a lift in US stockpiles forcing oil to give up its gains in late trade.

The local currency had began its sharp ascent on Tuesday as the RBA was more upbeat than expected and opted against talking down the Australian dollar.

Source: Market Spectator