THE Aussie dollar is higher this morning after recent domestic economic data lifted global demand in the currency.
At 7am his morning the dollar was trading at US104.73c, up from US104.61c yesterday.
BK Asset Management managing director Kathy Lien said the Australian dollar rallied to US105 overnight before losing ground following a downgrade of economic growth forecasts for Europe by European Central Bank president Mario Draghi.
"We had a real nice rally during the European session but as the day progressed and a lot of currencies came under pressure following President Draghi's comments the Aussie dollar also gave up its gains," she said from New York.
The ECB kept its key interest rate unchanged at 0.75 per cent, deciding against further stimulus despite downgrading its growth forecasts for the euro zone for 2013 to minus 0.3 per cent, from plus 0.5 per cent.
Speaking after the decision, Mr Draghi said he saw "downside risk to the economic outlook" and said "weak activity is expected to extend into next year."
The comments saw the euro move sharply lower against major currencies.
But Ms Lien said the Australian dollar had received a boost in recent days from domestic economic data including September quarter gross domestic product figures and November employment data, which were better than many traders had expected.
"We have seen quite a few upside surprises in the Australian data and I think that is reassuring some investors and keeping the Aussie dollar higher," she said.
The Australian dollar was likely to trade between US104.25c and US105c today, depending on the outcome of monthly trade data, to be released at 11.30am, Ms Lien said