Commodity prices gave the Australian dollar a boost, giving the currency a 1.4 percent increase to at $US0.8757 at mid-day trading.

Because of the nation's large commodities exports, the currency has been driven by commodity prices, analysts at Nomura Securities and RBS Bank concurred.

Commodities futures rallied further led by oil, precious and base metals like gold hit higher on the New York Mercantile Exchange. August gold settled at $US1,256.20 per fine ounce. July silver went up by 37.4 cents to settle at $US19.11 per fine ounce, and July copper rose increased by nine cents to $US3.0955 per pound.

Analysts forecast the Australian dollar to trade between $US0.8720 and $US0.8780.