$A higher on positive domestic sentiment

THE dollar has reached a two-month high on positive commentary about the domestic economy.

THE Australian dollar is at a two-month high on a more optimistic sentiment about domestic conditions.

At 06.30 AEST on Wednesday, the Australian dollar was trading at 103.17 US cents, up from 102.97 US cents on Tuesday.

On Tuesday, the local currency reached a two-week peak of 103.11, after the release of minutes from the Reserve Bank of Australia (RBA)'s July meeting which were more positive about the domestic economy.

However, its current position is the highest since early May.

Overnight, US Federal Reserve chairman Ben Bernanke signalled that another round of quantitative easing would not happen in the short term, sending the US dollar higher.