The Australian currency finished at a five-month high on Monday following reassuring Chinese economic data and a strong performance in the local share market.

At 5pm (AEST), the Aussie was changing hands at $US0.9319/21, an increase of almost one US cent on Friday's $US0.9231/33.

This was the strongest close for the domestic dollar since April 15, when it ended the domestic trading day at $US0.9342/44.

Since 7am, the Aussie ranged from $US0.9270 to $US0.9320.

The dollar was buoyed by Chinese data showing the rate of inflation was near a one-year high, according to Commonwealth Bank currency strategist Joe Capurso.

"The important piece of economic data was released in China on Saturday, and the first chance the market has had to respond to that data was this morning, our time."

"That was the major piece of data, although the Aussie was supported by regional stocks as well," he said.

While consumer inflation in the Asian superpower expanded at the fastest pace in nearly two years in August, its National Bureau of Statistics showed China remained robust that month.

Production, retail trade, inflation and money supply all increased at a firmer annual rate, implying that authorities will have to raise rates to slow the economy.

The local unit was also backed by the strength of the Australian share market, according to Mr Capurso.

The benchmark S&P/ASX200 index closed 1.2 per cent higher at 4,614.9 points, while the broader All Ordinaries index rose 1.16 per cent to 4,654.2 points.

Mr Capurso forecasts the Aussie to continue its upward movement, despite the lack of local economic data during the week.

"Volatility in global markets is low at the moment, so the Aussie dollar will trend higher" he said.

"There's a chance we will hit $US0.94."