The Australian dollar has bounced back from the three month low it hit on Monday, despite heavy falls on Wall Street, but following a bounce in gold prices.

At 0635 AEDT on Tuesday, the local currency was worth 77.17 US cents, up from 76.92 US cents on Monday.

Gold prices recovered amid weakness in equity markets, after the metal touched its lowest price in more than two weeks on Monday ahead of a US central bank meeting that could raise interest rates and signal three more increases this year.

One Australian dollar (As of 6:35AM AEDT on Tuesday) buys:

* 77.17 US cents, from 76.92 on Monday

* 81.86 Japanese yen, from 81.34 yen

* 62.50 euro cents, from 61.74 euro cents

(*Currency closes taken at 1700 AEDT previous local session)