Australian dollar cracks 70 US cents on climb to three-year high

The Australian dollar has surged overnight to its highest level against its US counterpart since February 2023, driven by a plunge in the greenback.

The Aussie currency was buying US70.11 cents earlier today after climbing 1.4 per cent.

It hit the mark in the lead-up to the release of new inflation figures today, expected at 11.30am.

READ MORE: The silver lining for the Australian dollar

The Reserve Bank of Australia is tipped to lift interest rates at its meeting next week if there is a larger-than-expected increase in consumer prices.

IG market analyst Tony Sycamore told the Australian Financial Review that geopolitical uncertainty and a falling greenback were behind the spike in the Aussie dollar.

"The Australian dollar's gains continued to be driven by a number of factors, including broad-based weakness in the US dollar which has accelerated post last weeks Greenland drama's and is now poised for a perilous break lower," he said.

On Tuesday (US Eastern Time) the US dollar recorded its lowest one-day drop since last April after US President Donald Trump said he was not concerned about its recent falls, reports Reuters.

"I think it's great," he said, when asked if the US dollar's value had declined too much.

"The dollar's doing great."

It finished Tuesday at a four-year low.

NEVER MISS A STORY: Get your breaking news and exclusive stories first by following us across all platforms.

• Download the 9NEWS App here via Apple and Google Play
• Make 9News your preferred source on Google by ticking this box here
• Sign up to our breaking newsletter here