The Australian dollar was higher today after news of an...

The Australian dollar was higher today after news of an impending gas deal between Britain and China boosted the commodity sensitive currency.

At midday, the Australian dollar was trading at 91.79 US cents, up from yesterdays close of 91.64 US cents. It was also buying 83 yen, 68.12 euro cents and 61.09 pence.

The Aussie touched a fresh lifetime high against the euro as sovereign debt concerns dogged the single currency, while gains in Asian stocks bolstered risk appetite elsewhere.


Since 7am this morning, the local unit has moved between 91.38 and 91.99 US cents.

IG markets institutional dealer Cris Weston said the unit was pushed higher on reports Chinas CNOOC plans to sign a 20-year purchase agreement of 3.6 million tonnes of liquified natural gas from Britains BG Group.

Under the initial terms of the agreement signed last year, CNOOC said it would buy five per cent of BGs interests in coal seam gas properties in Queenslands Surat Basin, with CNOOC becoming a 10 per cent shareholder in one of the plants first two LNG processing train.

And thats good for the Australian economy, Mr Weston said.

We are finding it to be a bit of a struggle at that 92 US cent level. The market seems to want to bring it lower.

Mr Weston said the unit was pushed higher in offshore trade by a strong performance on US stocks.

When it closed, the Dow Jones industrial average was 0.95 per cent higher at 10,888.83 points.

The equity market is always very positive for the Aussie and encourages risk taking, Mr Weston said.

With no economic data due for the rest of the domestic session, Mr Weston predicted the unit would trade within its morning session range.