Dollar trading around two-week high

THE Australian dollar is trading around a two-week high after stock market gains.

THE Australian dollar is trading around a two-week high after stock market gains.

The currency rose to 103.84 US cents early today following rallies on Wall Street, with the S&P 500 reaching a fresh all-time high.

It spent the morning trading in a narrow range just below that level and at 12pm AEST was at 103.74 US cents, up from from 103.58 US cents yesterday afternoon.

OzForex chief currency strategist Jim Vrondas said the Australian dollar had been unable to rise above its overnight high.

"It seems to be running into some resistance around that level," he said.

He said weaker-than-expected Chinese manufacturing figures, would also weigh on the currency during the afternoon.

The official figures, released around 11.30am AEST, showed the key manufacturing sector continued to expand in April, but at a slower-than-expected pace.

He said the Australian dollar could ease back to around 103.50 US cents during the afternoon session.

Meanwhile, Australian bond futures prices were unchanged at noon. At 12pm AEST today, the June 10-year bond contract was trading at 96.910 (implying a yield 3.090 per cent), the same level as yesterday afternoon. The June three-year bond futures contract was unchanged at 97.450 (2.550 per cent).