The Australian dollar is higher today on the back of rising commodity prices and an upbeat assessment of the economy from the Reserve Bank of Australia in their latest minutes meeting.

At 10.30am (GMT) the Aussie dollar was trading at US72.67c up from US72.42c in yesterday’s trade.

The price of oil rebounded overnight, rising more than 1% from a seven year low, as bargain hunters stepped in to snap up the precious commodity.

Iron ore, Australia’s biggest commodity, rose by nearly 1.5 percent, bouncing off 10-year lows and narrowing the gap between the usual pattern with the Australian dollar.

In their latest minutes meeting, the RBA noted that, the economy seems to be adjusting to the end of the mining boom and other industries are beginning to pick up.

"Recent domestic data had generally been positive," the RBA said in their latest minutes meeting on Tuesday with many analysts speculating the central bank was referring to the consecutive job positions created over the last 2 months which was the biggest jump in nearly 20 years.

Although the minutes meeting was overall positive, the RBA noted that inflation may be a problem and they left open the door for a rate cut next year should further data fall below expectations.

"Members judged that the outlook for inflation may afford some scope for a further easing of monetary policy should that be appropriate to lend support to demand," the minutes said,