The Australian dollar moved northwards as soon as the news of the inflation data going down hit the markets. It is to be mentioned here that the jump in dollar has come as a surprise for many as it came before the decision next week on economic stimulus by the US central bank.

For the record, the dollar was trading at close to 97.51 US cents which was up from the close faced on Wednesday wherein the dollar stood at a level of 37.39 US dollars.

However, the local unit had faced a fall on Wednesday and it was recently announced that the economy closed at a lower than expected underlying annual figure of close to 2.4% in the September quarter.

The news has already reduced the expectations of the November interest rate hike. Royal Bank of Scotland FX strategist Greg Gibbs said that the Australian dollar was in a much better position after the fall that it faced on Wednesday.

He also said that going forward; the US talks will be a major driver for the dollar in the economy.