$A opens higher on US health reforms

The Australian dollar opened higher after the passage of health reform in the US boosted risk appetite and distracted investors from the Greek financial crisis.

At 0700 AEDT, the Australian dollar was trading at $US0.9178/80, up from Monday's close of $US0.9136/40.

From 1700 AEDT on Monday, the local unit moved between $US0.9083 and $US0.9180.

Latitude FX executive sales manager Steve Jardine said the unit was lifted off its overnight (AEDT) session lows with the passage of historic and controversial health care reform in the US congress.

"Everyone was waiting to see if the health care package was going to get through the House," he said.

"As a result, we saw a bit of strength come back in Europe. The Aussie and the Kiwi all recovered.

"It put a bit of risk back on the table."

The US Congress on Monday (AEDT) passed the health care overhaul, handing President Barack Obama a landmark win.

The Democratic-controlled House of Representatives voted 219-212 late on Sunday to approve a Senate-passed bill aimed at extending health coverage to 32 million Americans who currently lack it.

The Congressional Budget Office estimates the bill will cost $US940 billion ($A1.03 trillion) over the next 10 years, but will cut $US143 billion ($A156.2 billion) from the bloated US deficit through 2019 and $US1.2 trillion ($A1.31 trillion) over the following decade.

"Tonight, we answered the call of history as so many Americans have before us," President Obama said after the vote.

"We did not avoid our responsibility we embraced it. We did not fear our future, we shaped it."

The news distracted investors from the Greek financial crisis and eased pressure on the local currency, Mr Jardine said.

During the offshore session, Greek Prime Minister Papandreou urged EU leaders to agree on financial help for Greece during a summit later this week and warned that his government might be forced to turn to the International Monetary Fund for help.

The Spanish presidency of the European Union said it would push the bloc to agree on financial aid for Greece at a summit this week, despite reservations from EU powerhouse, Germany.

"The Euro came under pressure initially," Mr Jardine said.

"That early pressure on the euro put downside pressure on the Aussie and Kiwi."

Mr Jardine said that with no domestic data due during Tuesday's domestic session he expected the local currency to trade between $US0.9130 and $US0.9200.

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