Better economic figures out of the US have failed to deter the Australian dollar, which rallied to a two-month high overnight.

At 7am (AEDT), the local currency was trading at US78.76c, up from US78.67c on Tuesday.

The Australian dollar bounced as high as US79.38c overnight, its highest level since January 28.

That was despite strong economic data out of the US, where core inflation ticked up to 1.7 per cent and sales of new homes climbed to their fastest pace in seven years.

Bank of New Zealand strategist Kymberly Martin said the local currency reached its peak around the time the US inflation data were released, despite the figures being stronger than market expectations.

Source : MarketsSpectator