The Australian dollar is firmer against the greenback, which sagged after US Federal Reserve policymakers appeared unsettled by signs of a global economic slowdown.

At 0700 AEDT on Friday, the currency was trading at 72.60 US cents, up from 71.77 cents on Thursday.

The Aussie climbed to a three-week high of 72.72 US cents following the release of the US Federal Open Market Committee minutes on Friday morning.

Westpac economists said while the minutes revealed little fresh information about rate hike timing, the Fed indicated it was prudent to wait for evidence that China-led economic instability was not knocking the US off course.

The Aussie is tipped to continue breaking higher, thanks to expectations the Fed may delay rate hikes, they said.

Kathy Lien, MD, BK Asset Management, said the currency also got a boost from a rise in commodity prices and stronger Chinese stocks after it market reopened following a week-long public holiday.

Lien said eight days have now passed without a down day for the Aussie and Kiwi dollars.

“This is the longest stretch of strength for either currency since June 2014,” she said.

“With resistance about 50 pips away for both pairs we could see a bit more strength before a reversal.”

AAP