The local currency is higher against the US dollar which fell slight overnight on dovish Federal Reserve comments from central banker Charles Evans.
The Australian share market looks set to continue the positive sentiment seen on many global markets overnight and open around a third of a per cent higher.
The RBA has kept the cash rate at 1.5 per cent and highlighted improving investment from non-mining sectors of the economy, plus high housing debt.
The Australian share market looks set to open up a third of a per cent, extending its Monday session's gains and after Wall Street found yet more record highs.
The Australian share market closed higher despite a public holiday in NSW, as investors responded to a positive US lead and encouraging Chinese economic data.