THE dollar is back above $US1.04, thanks to weakness in the greenback and softer Chinese inflation figures.
At 5pm AEST, the Aussie was at $US1.0424, up from $US1.0379 yesterday.
Rochford Capital senior consultant Richard Breen said strong demand for the euro helped weaken the US dollar, which lifted the relative value of its Australian counterpart.
He said the Aussie received a further boost around lunchtime as official Chinese figures showed inflation slowed to an annual rate of 2.1 per cent in March, from 3.2 per cent in February.
The figures reduced expectations the People's Bank of China would need to tighten monetary policy to rein in price rises.
Mr Breen said the Aussie lost some ground, but still remained well supported, after National Australia Bank's monthly survey showed business conditions slumped to their weakest point in four years in March
"It's certainly looking quite strong and we're certainly looking for it to head back and test the 104.50 US cent level during the week."
Mr Breen said the release on Thursday of official Australian jobs figures for March and the minutes of the US Federal Reserve's March board meeting would be the major drivers of the currency over the next few days.
