$A higher on hopes of Greek aid deal

The Australian dollar is higher amid hopes euro zone finance ministers will agree to unlock more than 30 billion euros in aid for Greece.

At 1200 AEDT on Monday, the currency was trading at 104.57 US cents, up from 103.98 cents on Friday afternoon.

Easy Forex senior currency dealer Francisco Solar said the Australian dollar was trading in a narrow range after it followed Wall Street higher on Friday night (Australian time).

"If anything it is holding onto its gains from late last week," he said.

Mr Solar said the currency was being supported by positive sentiment surrounding negotiations between euro zone finance ministers, which will continue on Monday night.

The finance ministers are considering whether to unlock more than 30 billion in aid for Greece, as part of the bailout package agreed to earlier this year.

A key factor in the discussions is the possibility that some of the nations funding the bailout will need to write down some of Greece's debt.

But speculation that writedowns would not be necessary had lifted market confidence, Mr Solar said.

"The rhetoric we have heard is that a deal is definitely possible without any writedowns, so that has kept sentiment elevated," he said.

Meanwhile, bond futures prices were higher at noon.

At 1200 AEDT on Monday, the December 10-year bond futures contract was at 96.800 (implying a yield of 3.200 per cent), up from 96.780 (3.220 per cent), on Friday.

The December three-year bond futures contract was trading at 97.280 (2.720 per cent), down from 97.260 (2.740 per cent).

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    0.9261-0.0026-0.28%
    AUDUSD=X
    0.5512-0.0022-0.40%
    AUDGBP=X
    0.6696-0.0025-0.37%
    AUDEUR=X
  • Commodities
    Commodities
    NamePriceChange% Chg