The Australian share market closed at a five month high after firmer commodity prices drove gains in the resources sector. The benchmark S&P/ASX200 index was up 16.1 points, or 0.34 per cent, at 4,697.5 points, while the broader All Ordinaries index had added 21.6 points, or 0.46 per cent, to 4,762.1 points. On the Sydney Futures Exchange, the December share price index contract was 14 points higher at 4,709 points, with 18,816 contracts traded. BHP Billiton was up 45 cents, or 1.1 per cent, at $41.45 while Rio Tinto put on 54 cents to $80.09. Fortescue shares jumped after the iron ore miner announced on Sunday a new financing facility, which eased its balance sheet pressure and firmed its expansion plans. Fortescue was the best performer on the S&P/ASX 100 index, closing 45 cents, or 7.76 per cent, higher at $6.25.

PanAust, a gold and copper miner, finished 8.5 cents, or 11.49 per cent, stronger at 82.5 cents. Gold miner Medusa added 42 cents, or eight per cent, to $5.67 and Perilya, which last week moved to diversify beyond base metals into gold and copper, appreciated four cents, or 7.77 per cent, to 55.5 cents. The spot price of gold in Sydney was $1,352.40 per ounce, up $19.71 from Friday's local close of $1,332.69. Gold miner Newcrest was up 25 cents at $42.16. Among energy stocks, Woodside was up 51 cents, or 1.15 per cent, at $44.94, Santos gained 14 cents, or 1.1 per cent, to $12.91 and Origin Energy was 10 cents firmer at $16.42.

In the banking sector, Commonwealth Bank was steady at $51.12, ANZ was nine cents higher at $24.16, National Australia Bank was five cents higher at $25.80 and Westpac slipped two cents to $23.16. Making headlines on Monday, Lend Lease said the property developer and manager was well placed for growth and would consider investing further in Asia, particularly in the retail sector. Lend Lease shares eased five cents to $7.81. BlueScope Steel said steel prices had started to improve after a substantial fall in the September quarter. Shares in BlueScope inched one cent lower to $2.23.

In other news, Virgin Blue said last month's outage of its reservations, check in and operating systems had cost the budget airline between $15 million and $20 million. Shares in Virgin Blue closed 1.5 cents, or 3.23 per cent, lower at 45 cents. Among retail stocks, Woolworths was down 50 cents, or 1.68 per cent, at $29.20 after the supermarket chain completed a $704 million share buyback, while Coles owner Wesfarmers was 38 cents cheaper at $33.62. Telstra put on two cents to $2.68. The most traded stock by volume was South Africa focused miner Continental Coal, with 108.3 million shares worth $7.3 million changing hands. Its shares were up half a cent, or 7.94 per cent, at 6.8 cents. Preliminary market turnover amounted to 2.73 billion securities worth $4.48 billion, with 673 stocks up, 515 down and 346 unchanged.

Australian dollar

The Australian dollar traded just off its post float highs against the U.S. dollar late Monday as currency traders picked up where they left off last week, selling the U.S. dollar. Weighing on the U.S. dollar in Asia trade was the impact of a weaker than expected Friday U.S. jobs report and as the International Monetary Fund's annual meeting over the weekend in Washington failed to ease currency battles roiling markets.

Australian bonds were largely unchanged as a quiet session was impacted by holidays in both Japan and the U.S. In the first Asian session since Friday's weak U.S. employment data helped reinforce expectations the Federal Reserve will announce new quantitative easing asset buying to add more monetary stimulus to the U.S. economy, the U.S. dollar was once again falling against nearly all major crosses.

Net downside speculative bets, called shorts, against the U.S. dollar increased 8% last week to US$31 billion. Speculators now hold the largest short U.S. dollar position since November 2007. That weakness has been particularly helpful for the Australian dollar, which now sits on the precipice of hitting parity for the first time since the currency was floated in 1983. An ongoing mining boom, robust labor market, carry trade benefits and a central bank in tightening mode have driven a month and a half surge for the currency, with market experts believing a move to parity possibly as soon as this week is now inevitable. The Australian dollar was at $0.9870, up from $0.9817 late Friday and after reaching a new post float high near $0.9920 Thursday. The Australian dollar also traded at 80.905, from 80.875 late Friday.