The Australian currency was slightly firmer at Tuesday noon after the central bank gave another strong indication of an increase in cash rates.

At midday AEST, the local dollar was buying 94.59 US cents, up from Monday's finish of 94.55 cents. Overnight, the Aussie reached 94.94 cents, its highest level since July 2008. It was also trading at 80.94 yen, 72.22 euro cents and 60.71 pence.

Since 7am, the domestic unit has changed hands between 94.49 US cents and 94.8 cents.

The Aussie rose one tenth of a US cent this morning after minutes from the Reserve Bank of Australia's September board meeting revealed the central bank was ready to lift the cash rate, said Commonwealth Bank currency strategist Joseph Capurso.

The RBA is set to increase its policy interest rate if the nation's economic strength continues to point to higher inflation, according to the minutes of the central bank's September board meeting released in Sydney today

Mr Capurso, however, attributes most of the lift of the Aussie from RBA governor Glenn Stevens' speech yesterday.

Speaking in Shepparton in regional Victoria on Monday, Mr Stevens noted policy makers would manage what he described as a ''robust economic upswing''.

"Part of that task will, clearly, fall to monetary policy,'' he said.

Mr Capurso expects the local unit would lose ground ahead of the Federal Open Market Committee meeting in the US during the upcoming offshore session.

He said it was unlikely the US Federal Reserve would introduce quantitative easing measures, and this news would strengthen the greenback and put downward pressure on the Aussie.