The Australian dollar has rallied on the back of a broad greenback selloff triggered by weaker-than-expected US economic data.

At 7.00am (AEDT) on Thursday, the local unit was trading at US71.80c, up from US70.21c on Wednesday.

The currency climbed to a one-month high of US71.88c earlier in the session.

The US service sector expanded in January but at a slower pace than the previous month, causing the greenback to fall against most major currencies.

New York Fed President William Dudley said in an interview that continued tightening of financial conditions would weigh on the decisions of the Fed’s policy board

Thursday will be fairly a quiet day for the Aussie, with traders looking ahead to the Bank of England’s upcoming interest rate decision.

Source: BusinessSpectator