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February 04 2013, 06:41AM

The Australian dollar is slightly higher following rallies on US share markets on Friday night.

At 0630 AEDT on Monday, the currency was trading at 104.04 US cents, up from 103.99 US cents on Friday.

The Australian dollar fell as low as 103.61 US cents late on Friday after weaker-than-expected Chinese manufacturing data raised expectations the Reserve Bank of Australia would cut the cash rate at its monthly board meeting on Tuesday.

The cash rate is currently at 3.0 per cent following a total of 1.75 percentage points in cuts between November 2011 and December 2012.

But the currency rebounded later in the European and US sessions as stock markets rallied.

In the US, the Dow Jones finished above 14,000 points for the first time since October 2007, closing 149.21 points, or 1.08 per cent, higher at 14,009.79.

Meanwhile, the broad-based S&P 500 finished at 1,513.17, up 15.06 (1.01 per cent), while the tech-heavy Nasdaq Composite jumped 36.97 points (1.18 per cent) to 3,179.10.