The Australian dollar is slightly higher thanks to encouraging business figures.

At 0700 AEST on Wednesday, the local currency was trading at 92.69 US cents, up from 92.53 cents on Tuesday.

Business confidence was at its highest level in almost a year, the National Australia Bank monthly business survey on Tuesday showed.

Business conditions were at a near four year high.

The Australian dollar was slightly higher on the back of the strong business confidence figures, said BK Asset Management MD, Kathy Lien.

“Due to stabilisation in China, the NAB confidence index rose for the fourth month in a row to a 10 month high,” Lien said.

Lien said the Australian dollar would be driven by Chinese industrial production and retail sales figures on Wednesday.

“The Australian and New Zealand dollars are having a tough time rallying but if industrial production beats expectations, reassuring investors that Australia and New Zealand should benefit from the economic stability of their number one trading partner, the Australian dollar and US dollar could bottom above 92 US cents,” she said.

AAP