The Australian currency is trading higher as the greenback falls in the lead up to a lunchtime speech by the Reserve Bank of Australia governor.

Around Monday noon, the Aussie was changing hands at 94.06 US cents, up from Friday's finish of 94.39 cents.

The local unit had hardly moved on Monday morning and ''it just looks like the US dollar is a little bit weaker," according to Commonwealth Bank chief currency strategist Richard Grace.

Subdued domestic trade followed a volatile offshore session over the weekend.

The domestic currency opened lower today on speculations of an IMF bail-out for Ireland. In the offshore session over the weekend, it had gained almost 1 US cent on rumours that the Bank of Japan was buying the Australian dollar.

According to Mr Grace, traders were now waiting for a speech by RBA Governor Stevens at Shepparton in regional Victoria.

''He may be softening up regional Australia for a rate rise some time in the next couple of months.''

''I think the net outlook would be somewhat positive for the Australian dollar,'' Mr Grace said.

He expects the Aussie would reach 94.40 US cents in afternoon trade on an increased chance of an interest rate rise.