The Australian dollar has rallied, reaching a four month high against a weaker greenback.

Early Wednesday, the local currency was trading at 93.62 US cents, up from 93.17 cents on Tuesday.

The local currency reached a peak of 93.67 US cents overnight, its highest level since November 19.

Bank of New Zealand strategist Kymberly Martin said major and emerging market currencies had rallied on US dollar weakness, but the Australian dollar was one of the top performers.

Reaction to recent US jobs figures was to blame for the weaker US dollar, she said.

“The biggest thing across currency markets overnight was the weakness in the US dollar and this is really an overhang from Friday’s response to the non-farm payrolls,” Martin said.

“Also helping the Aussie was the National Australia Bank monthly business survey which wasn’t outstandingly positive but didn’t provide any negative surprise.

“There was also a better tone in equities across the board and there was some better risk appetite.”