The dollar has bounced back from losses made after the central bank's surprise interest rate cut, thanks partly to some positive Chinese trade figures.
At 5pm AEST, the local unit was trading at $US1.0201, up from $US1.019 yesterday.
The Reserve Bank of Australia yesterday cut the cash rate by quarter of a percentage point to a record low of 2.75 per cent.
That pushed the currency down to a two-month low of $US1.0155 during the overseas session early this morning.
Easy Forex financial technician Curtis Miller said the RBA's move initially caught the market by surprise but during local trade on Wednesday the Australian dollar has been able to gain some ground.
"The market is very surprised the Aussie dollar hasn't been able to break below 101.50 US cents," he said.
"Normally with a surprise rate cut we'd see some real weakness in the Aussie dollar but it is standing its ground."
Mr Miller said most traders started buying the currency when it dropped towards $US1.015.
He said the Australian dollar also got some support from encouraging Chinese trade figures, showing a strong rise in imports.
"This has led to some Aussie dollar buying so that 101.50 US-cent level is being held at the moment," Mr Miller said.
The Australian Bureau of Statistics will tomorrow release jobs figures for April, with the unemployment rate expected to remain steady at 5.6 per cent.
