The Australian currency was flat at Thursday noon as investors await news on the possible resumption of quantitative easing measures by the US Federal Reserve.

At midday AEST, the domestic unit was changing hands at 95.63 US cents, down fractionally from Wednesday's local finish of 95.64 cents.

Since 7am AEST, the Aussie traded between 95.27 and 95.71 cents.

The Australian dollar reached 96 US cents during offshore trade, its highest level since July 25 2008 when it touched 97.92 US cents.

The local unit was being boosted after the Fed said on Tuesday night (AEST) it was ready to "provide additional accommodation" to the US economy, according to Commonwealth Bank currency strategist Joseph Capurso.

"The Fed's action happened late in New York time so last night was the first time London FX markets had a chance to respond."

"London FX markets are the biggest in the world so that's why you've seen that late reaction last night," Mr Capurso said.

In a statement on Tuesday night (AEST) the US Fed said it is "prepared to provide additional accommodation" to the American economy.

Since the statement, the greenback slid to hit a six month low against a basket of currencies.

The Fed's statement stands in direct contrast to the Reserve Bank of Australia's (RBA) comments early this week about the health of the domestic economy and prospects for an interest rate rise soon.

Mr Capurso said further interest rate rises could send the Aussie to parity with the US dollar for the first time in 27 years.

It could happen in two stages, with the Australian dollar first reaching 98.50 US cents in late 2010, before possibly reaching parity in early 2011, he said.

"One reason the dollar is as high as it is that the market has changed its view of the RBA," he said.

"There's probably more rate rises to be priced in. If we're right, that will help push up the Aussie dollar and inch closer towards parity."

The current cash rate is 4.5 per cent following six rate rises between October last year and May.

Since the central bank's comments, the Futures market is pricing in a 50 per cent chance the RBA will resume lifting the rate at its board meeting on October 5.

Mr Capurso forecasts little action on the local market for the rest of the day, with no market moving data due.