The Australian bourse has erased morning gains but is still trading higher on the first day of the new quarter, despite negative offshore leads overnight. Investors in Europe and the US tried to balance better-than-expected US economic data against eurozone debt fears.

At midday AEST, the benchmark S&P/ASX200 index had climbed 0.24 per cent to 4,593.9 points, while the broader All Ordinaries index was 0.22 per cent higher at 4,647.5 points.

The major resource stocks were stronger, with BHP Billiton advanncing 1.36 per cent to $39.44 while Rio Tinto added 0.45 per cent to $77.12. Iron ore miner Fortescue Metals Group firmed 0.76 per cent to $5.25.

Gold producer Newcrest Mining strengthened 0.85 per cent to $40.01, despite the precious metal dipping on profit-taking after rallying to record highs.

Oil companies were mixed despite strength in crude prices, with Woodside Petroleum lifting 0.97 per cent to $44.31 and Oil Search gaining 0.81 per cent to $6.20, while Santos lost 0.54 per cent to $12.74.

The major banks opened stronger but concerns over the health of some banks in Ireland may weigh upon the sector during the day.

National Australia Bank was 12 cents higher at $25.46. Westpac eased 7 cents to $23.17, Commonwealth Bank sagged 11 cents to $51.06, and ANZ lost 11 cents at $23.57.

Investment bank Macquarie Group was flat at $36.26.

In the retail sector, surfwear retailer Billabong International firmed 3 cents to $8.00 after it agreed to buy 38 retail stores including the Surf Dive 'n' Ski retail banner from the General Pants Group.

Department store David Jones defied court action to lift 1 per cent to $5.03, while rival Myer edged up 0.26 per cent to $3.77.

Harvey Norman were 0.53 per cent weaker at $3.75 while electronics retailer JB Hi-Fi lost 0.58 per cent to $20.54.

Supermarket operator Woolworths jumped 1.35 per cent to $29.23, while Coles owner Wesfarmers were flat at $32.90.