The Australian dollar has fallen to a fresh two-month low during overnight trade, before recovering most of its lost ground amid gains on US share markets.
The blue-chip Dow Jones Industrial Average has closed above 15,000 for the first time as investor optimism about the US economy bolstered equities like Caterpillar.
The Australian dollar is still higher after getting a boost from better US employment figures, increasing optimism about the America's economic recovery.
The Australian sharemarket has opened more than one per cent higher after strong US jobs numbers pushed American stocks to a record high and helped miners outperform the market.
European and US stock markets soared to end last week, with the Dow, S&P 500 and Germany's Dax setting new records, as strong US jobs data for April revived confidence in the US economic recovery.
The S&P 500 has reached a new all-time high, boosted by an expected European Central Bank interest rate cut and a surprisingly good US jobless claims report.
US stocks have risen amid solid data on housing and consumer confidence and as reports of a $US17 billion ($A16.5 billion) Apple bond sale cheered investors.
Australian stocks have closed higher as ANZ's $3 billion plus half-year profit dragged its shares to record highs and the local market along for the ride.
