The Australian dollar rose to a two-month peak against its US counterpart on Tuesday as risk sentiment improved after lenders finally agreed on measures to cut Greece's long-term debt, paving the way for the release of more loans to Athens.

The Aussie climbed to $US1.0491, its highest since late September. It last fetched $US1.0480, up 0.2 per cent on the day.

The Aussie's rise was only modest as markets had been fully priced for a Greek deal, which emerged after three weeks of painful discussions.

The agreement involves a reduction of Greece's public debt to 124 per cent of GDP in 2020 and opens the way for a major aid instalment needed to recapitalise Greece's teetering banks.

Advertisement The Aussie was within easy reach of $US1.0625, the September peak. A break above would bring it to its highest since March.

"There is a fairly positive trend for risk assets generally and I would not be surprised to see continued gains in the offshore session," said Greg Gibbs, a strategist at Royal Bank of Scotland in Singapore.

He sees a possible run to $US1.0600 ahead of the Reserve Bank of Australia's monthly policy decision next week.

For now immediate resistance is seen at $US1.0520, with near-term support at $US1.0425.

The Aussie kept near eight-month peaks on the yen, with the Aussie fetching 86.14 yen, having risen to a high of 86.42 on Monday.