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$A opens at five-month high

The Australian dollar opened one US cent higher at a five month peak on Monday, as news of a bailout package for debt-ridden Greece caused a surge in global risk appetite.

At 0700 AEST, the Australian dollar was trading at $US0.9384/86, up from Friday's close of $US0.9286/88.

It was the unit's strongest showing against the US dollar since November 16, 2009, when it touched $US0.9400, according to IRESS data.

Since 1700 AEST on Friday, the local unit ranged between $US0.9276 and $US0.9386.

Bank of New Zealand currency strategist Mike Jones said the local unit had pushed higher following news that the European Union (EU) would provide a 30 billion euro ($A43.16 billion) aid package for Greece, in a move designed to restore confidence in the euro.

"On the back of that, we saw the Aussie and Kiwi push higher," Mr Jones said.

"We saw risk appetite hit higher... It's been a positive weekend for most currencies."

Finance ministers from the 16 EU countries on Sunday agreed on a three-year financing program at interest rates of around five per cent, which they said represented a slight premium compared to standard International Monetary Fund levels.

The crisis in Greece in recent months has seen the euro dollar decline sharply against other major currencies and stoked fears about the strength of Europe's recovery from last year's global financial crisis.

Mr Jones said he expected the positive sentiment to sustain the Australian dollar throughout Monday's domestic session.

He said if the domestic unit closes the local session above $US0.9370, he expected it to touch $US0.9400 during Monday's offshore trade.

Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.

More about: Bank of New Zealand, EU, International Monetary Fund

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