The Australian dollar came off a four-year low overnight after American headline inflation was shown to be growing at a modest annual pace of 1.7 per cent, which is below the US Federal Reserve's 2 per cent target.
The Australian dollar moved lower against its US counterpart on Wednesday as the market took on board the latest signs from the Reserve Bank of Australia that interest rates will stay low for a while yet.
The Australian dollar is back above US86� after flat American inflation figures made traders rethink a US rate rise. At 7am AEDT on Friday, the local currency was trading at US86.35�, up from US85.93�s on Thursday.
The signing of a free-trade agreement between Australia and China this week could give the Australian dollar a boost against the greenback, but most economists still maintain it's longer term path is lower.
The Australian dollar has also by about the same amount since its peaks against the euro and the British pound. "We've also seen a huge spike in people buying Japanese yen, three times higher than usual, possibly because October is considered an ideal ...