The dollar was higher late today following strong economic data showing rising house prices in the fourth quarter of 2012 and solid gains in consumer sentiment in March.
At 4.50pm AEDT, the Aussie fetched $US1.0313 compared with US$1.0282 late yesterday. It traded as high as $US1.0333 in Asia.
A survey published by Westpac and the Melbourne Institute showed consumer sentiment improved by 2.0 per cent in March from February to an index level of 110.5 points, the highest reading since December 2010. In annual terms, the consumer sentiment index rose 15 per cent.
Separately, figures compiled by the Real Estate Institute of Australia showed capital city house prices in the fourth quarter of last year rose 3.8 per cent from the third.
"Overall, it's more reason for the RBA to stay in hold in April," National Australia Bank economist Spiros Papadopoulos said. "The economy should be performing better, not worse, in the second half of the year."
The Reserve Bank of Australia has cut rates six times since November 2011 to help lift the world's 12th-largest economy, as a mining boom fuelled by China's demand for raw materials slows.
Last week the central bank kept its benchmark cash rate steady for the second straight month, citing an improvement in interest-rate sensitive parts of the economy, including housing.
Some steam was taken out of the Australian dollar by news of a fall in housing finance in January. Government figures showed home-loan approvals in January were 1.5 per cent lower from December. It went against economist expectations for a 0.5 per cent rise.
Still, economists said they expect low interest rates to support a stronger housing sector in coming months.
"There are some green shoots in the sentiment survey questions on housing and investor activity appears to be improving so we continue to look for a gradual recovery in housing this year," Paul Brennan, chief economist at Citigroup, said.
Unemployment data for February tomorrow will be the next key event for the Australian dollar.