The Australian dollar is higher as markets recover from news of the Malaysia Airlines crash in eastern Ukraine.
Early on Monday, the local currency was trading at 93.93 US cents, up from 93.72 cents on Friday.
The currency fell on Friday amid fears Flight MH17 from Amsterdam to Kuala Lumpur was shot down by pro-Russian rebels.
The crash dampened risk appetite but that began to turn around on Friday night, Bank of New Zealand strategist Kymberly Martin said.
“There was an improvement in risk appetite on Friday night,” Ms Martin said.
“Markets suffered quite a bit of risk aversion following the events in Ukraine but, on Friday night, we saw a bit of a reversal with US equities rising.
“The Australian dollar was a beneficiary of that.”
The Australian market has opened higher, following gains on Wall Street.
Patersons Securities economist Tony Farnham said the gains in US markets on Friday night meant local stocks were starting on the front foot.
Mr Farnham said that while the market was slightly higher, a fall in metals prices late last week meant resources companies were mostly weaker.
“If you look at the major stocks there is a bit of support for some of the banks, but the softness we saw in metal prices on Friday meant it was going to be a tough gig for the major resources companies to contribute to a rally,” he said.
Among the big miners, BHP dropped seven cents to $38.32, while Rio Tinto slipped 20 cents to $64.09 but Fortescue Metals gained two cents to $4.61.
The big banks were higher, with the Commonwealth Bank up 17 cents to $81.44, Westpac 20 cents higher at $34.10, ANZ 10 cents better off at $33.52 and NAB climbing 17 cents to $34.34.
Shares in Washington H Soul Pattinson fell nine cents to $14.71, while Brickworks was up one cent to $14.22 after a tax ruling effectively ended a proposal to disentangle the companies’ cross ownership structure.
Fairfax Media gained 2.75 cents to 93.75 cents, following media reports billionaire Gina Rinehart is considering launching a takeover bid for the company.
