At 12.00pm (AEST), the dollar was trading at $US0.8005/08, up from yesterday's close of $US0.7966/69.
During the morning, the local unit moved between a low of $US0.7985 and a high of $US0.8024.
Suncorp Bank FX trader Tony Bieber said a bright opening on equity markets helped support the dollar's move higher during subdued trading this morning.
"The reason we've seen the Aussie bounce is that we've seen equities open up a bit higher,'' Mr Bieber said from Brisbane.
"We've come in this morning and the news was pretty much good across the board in the US.''
The dollar opened at $US0.7986/91 at 7.00am after an up-and-down offshore session. The local currency reached its overnight high of $US0.8053 after some positive US manufacturing and jobs data, but the move was not sustained.
Instead, the dollar dropped back below $US0.8000 in line with a weaker euro as investors sold the European currency following a failed attempt to break above $US1.4000.
"That's become a really big psychological level,'' Mr Bieber said of the $US1.4000 mark.
The US Federal Reserve of Philadelphia's manufacturing index rose sharply in June to its highest level since September last year.
There was encouraging news on the US jobs front, too, with the number of people on US unemployment benefits - known as continuing jobless claims - falling by 148,000 to 6.68 million in the week ending June 6.
"What we are seeing is the rebound-in-the-economy story buoying the Aussie,'' Mr Bieber said.
Mr Bieber said he expected the dollar to trade between $US0.7950 and $US0.8050 ahead of European markets opening later this afternoon.
The dollar last closed the session above $US0.8000 on June 15, when it finished at $US0.8036/39. He said another move up in commodities prices was needed to take the domestic currency above that $US0.8050 level.
"Before we get firmly ensconced above $US0.8050, we are going to need commodities to give evidence to the turn in sentiment,'' Mr Bieber said.
At 12.00pm, the Reserve Bank of Australia's trade weighted index (TWI) was at 64.2, up from yesterday's close of 63.5.
Meanwhile, the local bond market was weaker.
The yield on the Commonwealth Government March 2019 bond was 5.720 per cent, up from yesterday's close of 5.580 per cent, while the yield on the April 2012 bond was at 4.565 per cent, up from 4.402 per cent.
On the Sydney Futures Exchange, the September 10-year bond futures contract price was 94.280, down from yesterday's close of 94.420, while the September three-year bond futures contract was at 95.240, down from 95.380.
