Aust dollar rebounds on Fed talk

The Australian dollar has jumped back towards US93c after US Federal Reserve chief Janet Yellen talked down the prospect of an imminent interest rate rise.

At 715am (AEDT), the local unit was trading at US92.73c, up from US92.31c at the close of local trade on Monday.

Earlier, the dollar suffered a minor pullback on Monday as traders booked profits from a furious recent rally that had driven the local unit to four-month highs.

Over the past 24 hours the Australian dollar has traded as high as US92.80c and as low as US92.18c. At its current level it is just shy of its 2014 peak of US92.97c, which it hit on Friday.

The bounce came after comments from Ms Yellen, which highlighted a need for extraordinary stimulus from the Fed to continue.

"While there has been steady progress, there is also no doubt that the economy and the job market are not back to normal health," she said.

"The recovery still feels like a recession to many Americans, and it also looks that way in some economic statistics."

The local currency could push past US93c today if the Reserve Bank of Australia strikes a more positive tone in the media release accompanying its monthly rates decision at 230pm (AEDT). The RBA is widely tipped to keep rates on hold, though the market will be analysing the statement for any signs of when the next rate move may take place.

Investors are also waiting patiently for US and Chinese manufacturing numbers this week ahead of the closely watched monthly jobs data release in the US at the end of the week.