The Australian currency opened higher this morning as data signalling a slack off in the US economic recovery undermined the American dollar.

At 7am AEST, the local currency was exchanging at 84.28 US cents, higher by 0.86 per cent from Thursday's close of 83.58 US cents.
From 5pm AEST on Thursday, the exchange rate ranged between 83.34 and 84.43 US cents.

According to Bank of New Zealand currency strategist Mike Jones, the Australian currency strengthened during New York trade as US economic data weakened the greenback.

According to the US Department of Labor, initial claims for unemployment benefits in the US increased last week for the second time in three weeks. New claims for benefits skipped 13,000 to a seasonally adjusted 472,000.
The four-week average, which evens fluctuations, soared to 466,500, its peak level since March.

Sales of existing homes in the US slumped 30 per cent in May, according to the National Association of Realtors.

Industry trade group US Institute for Supply Management disclosed its manufacturing index slid to 56.2 points in June from 59.7 the previous month.
"Markets focus shifted towards signs the US economy is starting to lose steam," Mr Jones said.

"Just about every piece of US data that was released last night was weak.

"That has seen the US dollar under quite a bit of pressure across the board and that has provided a bit of a boost for the Aussie dollar."

Mr Jones said the announcement by Prime Minister Julia Gillard of a compromise between the federal government and the miners over the resource rent tax would be important for the local currency.

"Any concessions for mining would be viewed as positive for the Aussie dollar," he said.

He forecast the Australian dollar to trade between 83.20 and 85.10 US cents during the conference.

As of 8:53 a.m. in Sydney, the local currency gained 0.4 percent to 84.69 U.S. cents from yesterday in New York.