A rise in commodity prices has helped push the Australian dollar back above the $US1.03 level.
At 5pm AEST, the local unit was trading at $US1.031, up from $US1.0246 on Wednesday.
CMC Markets foreign exchange dealer Tim Waterer said the currency was benefiting from a rise in commodity prices.
"We're seeing a pretty good bounce back by gold this week, and crude oil is up a bit as well and equities have been going along quite well," he said.
"That is sapping some US dollar demand and leaving the door open for the Australian dollar to push above 103 cents."
Mr Waterer said the currency had been prevented from rallying further due to growing expectations the Reserve Bank of Australia would cut the cash rate, currently at 3 per cent, in the next few months.
Speculation of a rate cut intensified after official figures on Wednesday showed inflation in the middle of the central bank's two to three per cent target range.
"That is curtailing some buying in the Australian dollar," Mr Waterer said.
