Better economic prospectus and rise in investor's confidence has had positive impact over Australian Dollar that climbed two year high of the euro on Wednesday.

Nick Bennenbroek, head of currency strategy at Wells Fargo in New York said, "If you're in a waiting period, just wanting to park money somewhere for a few days, than certainly the Australian dollar in particular gives you at least some kind of yield you can benefit from."

The Australian dollar climbed to its highest level of 0.6260 compared to the Tuesday close of 0.6330. Dollar fluctuated between 0.6260 and 0.6270 Euros on December 31 making traders and economists to project further rise in Aussie currency in coming period.

Sue Trinh, an analyst at RBC Capital, "The euro has taken out key technical support levels and that is fuelling downside momentum for it."

Jonathan Cavenagh, an analyst at Westpac, said that the Australian dollar is expected to reach at 0.6500 Euros in the coming month. There is no clue from the Reserve bank of Australia regarding hiking key interest rates in its forthcoming meet scheduled on February 2.

Meanwhile, the Australian dollar also performed well against sterling by reaching at the two moths high of 0.5716 against the Tuesday close of 0.5666. However, it remained flat at $US0.9144 against the US dollar.