Since floating in December 1983, the Australian dollar had hit a low of $A1 buying US47.75c in April 2001, but on Friday the Australian was purchasing $US1.0295, which had since eased to around $1.0267 yesterday.
The record cross-rate was down to a combination of strengthening global equity markets and investors returning to riskier markets and currencies and the Australian interest-driving official cash rate sitting at 4.75%, compared to almost 0% in the United States, Craigs Investment Partners broker Peter McIntyre said.
During the weekend the New Zealand dollar rose against the greenback to US75.7, and was trading yesterday around US75.3.
Aside from strength in equity markets, the inflow of insurance money to New Zealand from the February earthquake prompted some investor demand for the kiwi, but it weakened off against the Australian, Mr McIntyre said.
While there had been talk of the Australian and kiwi reaching their own dollar-for-dollar parity in October 2008, when the kiwi was buying A92.7c, it has since then "spiralled down" to yesterday's trading figures, around A73.29, Mr McIntyre said.
He said the strength of the Australian against the greenback was underpinned by the global rally in the resource sector.
Australia enjoys a large stake in that sector, with the cornerstone of demand coming from growth in China and India.
Also strengthening the Aussie was the fact that many resource sector commodities were traded in US dollars; with further weakening of the greenback benefitting the Aussie, he said.
Bank of New Zealand currency strategist Mike Jones said equity markets had continued to post gains on improved market sentiment.
"It was a very strong night for the Australian dollar on Friday night, surging to a new 29-year high just below 103.00 US cents," Mr Jones said from Wellington.
"That's all due to a marked improvement in the global backdrop, we've seen investor fears about Japan's nuclear crisis and Portugal's sovereign solvency fade into the background last week.
"Against that less risk averse backdrop, we saw investors ditch safe-haven currencies like the US dollar and the yen and invest in growth sensitive currencies like the Australian dollar."
Mr Jones said global sentiment over Japan, Libya and European sovereign debt would likely drive currency markets this week.
He expected the Australian dollar to trade between 102.20 US cents and 103.00 US cents today. -
• Additional reporting AAP.
