The Australian currency was higher at Thursday noon, retaining most of its overnight strength after manufacturing data led to a more positive outlook on the US economy.

At midday east-coast time, the domestic unit was changing hands at 90.72 US cents, an increase from Wednesday's finish of 90.1 US cents. The Aussie was also buying 76.49 yen, 70.85 euro cents and 58.72 pence.

Since 7am, the local dollar ranged from 90.7 to 91.17 US cents.

The Australian dollar added 1 US cent overnight after data showed the US manufacturing sector increased in August for the 13th straight month, a cause for optimism that the American economy will recover without delay.

It, however, dipped back from its highs during the morning and after the announcement of Australian trade figures showing a $1.888 billion surplus in July, from a downwardly revised surplus of $3.438 billion in June.

Nomura Australia chief economist Steven Roberts expected the local unit to be well supported over the next few sessions following the overnight positive economic data.

''Having said that it's going to be a bit dependant on what's happening overseas,'' he said.

''We've got nonfarm payrolls coming out in the US on Friday.

''If it comes in near expectations or even a little bit softer it'll probably confirm the US outlook is not as bad as people were previously expecting and you'd expect to see firmness for the Australian dollar in the not too distant future.''

Mr Roberts forecasts the Aussie to break the 92-US-cent mark again. For the rest of the day, he expects local unit would trade at similar levels as it did this morning.