The Australian dollar has bounced back above 93 US cents after soft US economic data weakened the greenback.

At 0700 AEST on Friday, the local currency was trading at 93.19 US cents, up from 92.99 cents on Thursday.

Weekly applications for unemployment aid climbed 21,000 to a seasonally-adjusted 311,000, the US Labor Department said.

The greenback was slightly lower against the Australian dollar as a result, said BK Asset Management MD, Kathy Lien.

She said the jobless claims figures, along with subdued inflation numbers, made it more likely the US central bank would leave rates on hold for a while.

“Investors agree that the latest US economic reports leave Federal Reserve Chair Janet Yellen comfortably dovish,” Lien said.

“At the same time, the US dollar is holding on to its gains against the three most actively traded currencies because, even with these data disappointments, the outlook for the US is brighter than the outlook for the Eurozone, UK, and Japan.

“These reports will harden the central bank’s resolve to leave rates on hold for a long period of time after quantitative easing ends.”

AAP