A batch of upbeat US data has whacked the Australian dollar back down toward 78 US cents following a short lived rally overnight.

At 0700 AEDT on Friday, the local currency was trading at 78.20 US cents, up slightly from 78.18 cents on Thursday.

The Australian dollar began climbing on Thursday afternoon, peaking at 78.85 US cents at around 2030 AEDT before descending back toward 78 US cents.

The currency came under pressure as positive US economic data, including weekly jobless claims and service sector figures, boosted the US dollar, National Australia Bank global co-head of FX strategy, Ray Attrill, said.

“US weekly jobless claims fell to 282,000 from 291,000 – levels consistent with ongoing 250,000 plus gains in US non farm payrolls and a declining unemployment rate,” Attrill said.

AAP