The Australian dollar opened higher than yesterday's close of 91.69 US cents.

The local currency was trading at 91.74 US cents and has traded between 91.51 and 91.81 US cents. It was buying 77.25 yen, 59.56 pence, and 71.22 euro cents.

Bank of New Zealand (BNZ) currency strategist Mike Jones said the Australian dollar maintained an upward movement during offshore trading. “The Aussie drifted up from just below 91.6 to 91.8 US cents, so it was a very tight range overall,” Jones said.

Local events that could affect the Aussie today are the Reserve Bank of Australia's (RBA) decision on the interest rate and the kind of minority government to be formed. Jones stressed that the RBA would be keeping the cash rate unchanged at 4.50 percent. The RBA decision is expected at 2.30 p.m. east-coast time.

The bank strategist also said, “Traders will also be closely watching whether Prime Minister Gillard is able to cobble together a minority government.” A Green minority, according to Jones, would mean a negative on the mining tax and also a negative for the Australian dollar.

However, Jones quickly added, “that really depends on what impact the shape of the government is.”