• AAP
• December 23, 2015 7:47AM
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The Australian dollar is slightly higher after oil prices started to stage a recovery and encouraging US economic data gave Wall Street a boost.

At 7.00am AEDT on Wednesday, the local unit was trading at 72.26 US cents, up from 72.19 cents on Tuesday.

Early on Wednesday morning it peaked at 72.49 US cents, its highest level since Thursday of last week.

The US economy grew at an annual rate of two per cent in the third quarter as strong consumer and business spending offset efforts by businesses to reduce an inventory glut.

However, US home sales plunged sharply in November as buyers faced rising prices and new regulations that might have delayed some closings.

National Australia Bank interest rate strategist Rodrigo Catril said the mixed US economic data limited the Australian dollar’s gains.

“Moves in oil prices remain the main driver for markets amid a decline in trading volumes ahead of the Christmas holiday break,” he said.

“The stabilisation in oil prices also benefited commodity related currencies while mixed US data releases marginally weighed on the US dollar.”

CURRENCY SNAPSHOT AT 0700 AEDT ON WEDNESDAY

One Australian dollar buys: * 72.26 US cents, from 72.19 cents on Tuesday * 87.44 Japanese yen, from 87.48 yen * 65.97 euro cents, from 66.17 euro cents * 106.20 New Zealand cents, from 106.05 NZ cents * 48.78 British pence, from 48.49 pence (*Currency closes taken at 1700 AEDT previous local session) Source: IRESS.

AAP