$A bounces from 34-month low

The Australian dollar has opened firmer despite some positive manufacturing activity data out of the United States.

The Australian dollar has opened firmer despite some positive manufacturing activity data out of the United States.

At 0630 AEST, the local unit was trading at 92.36 US cents, up from 91.99 cents on Monday.

The currency regained ground during offshore trade despite the US' Institute of Supply Management (ISM) reading for June showing an improvement in American manufacturing activity, with the index rising above the 50 level signifying an expansion.

The US dollar usually tends to firm on positive US economic news.

But the ISM data also showed manufacturing employment contracting for the first time since September 2009.

The Australian dollar's rise also coincides with gains on US equity markets, with the Dow Jones Industrial Average gaining 0.43%, after rising above 15,000 points earlier in the session, and the broad-based S&P 500 lifting 0.54%.

During yesterday's local session, the Australian dollar fell to 91.11 US cents, its lowest level since September 2010.

The dollar's recent decline is expected to help compel the Reserve Bank of Australia to hold off on any further interest rate cuts at its monthly meeting this afternoon.