The Australian dollar has continued to climb and has reached a new high this afternoon, trading at 106.55 US cents.

The local share market also traded strongly today closing 1.3 per cent higher lead by resource stocks.

The All Ordinaries rose 66 points to 4,940, while the ASX 200 matched the gains to finish at 4,859.

Strong leads from the US started the day off in a buoyant mood and resource stocks led the gains for most of the day on the back of a rebound in metals prices.

BHP ended the day up 1.2 per cent to $47.23, despite reporting a downturn in production.

March quarter metallurgical coal output is down 14 per cent from the December quarter because of the floods in the Bowen Basin in Queensland.

The miner says the suspension of contracts remains in place for most of its Bowen Basin products, and production and sales are likely to be affected for the rest of 2011.

Iron ore output has dropped by 1 per cent from the December quarter to about 33.2 million tonnes.

Shares in Santos closed up 2.4 per cent to $15.63 despite also reporting a fall in production.

Santos has cut its production guidance for this year to around 50 million barrels of oil equivalent after poor weather hit drilling operations in central and western Australia.

Rio Tinto finished the day up 1.2 per cent to $83.12.

Shares in Wesfarmers rose 1.5 per cent after posting strong quarterly sales up 7.1 per cent on the same time a year ago, up on rival Woolworths' 3.9 per cent rise for the same period.

Shares in Gunns closed up 3 per cent. After the close there was an announcement that shareholders are suing the company for non-disclosure.

It was a strong day for the banks with the ANZ leading, up 1.8 per cent.

West Texas crude was worth $US107 a barrel, while tapis was fetching $US128.

Spot gold was at a record high of $US1,501 an ounce.