The Australian dollar is higher but is failing to build onto its gains as commodity prices fall.
At 1200 AEST on Thursday, the local unit was trading at 98.99 US cents, up from 98.72 cents on Wednesday.
During the morning, the currency peaked at 99.15 US cents, its highest level since Tuesday.
CMC Markets senior trader Tim Waterer said the Australian dollar was trading in a fairly tight range on Thursday after rallying overnight.
"There's little in the way of positive drivers for the Australian dollar at this stage," he said.
"We are seeing further weakness in the spot gold price at the moment.
"Those resource headwinds are curtailing any attempt by the Australian dollar to move back in the direction of parity (with the US dollar)."
Mr Waterer said the Australian dollar rallied during the New York session after the release of weak US industrial production data for April and the fall in New York state manufacturing activity in May.
"The weakness in the US data overnight stalled the US dollar momentum and that's what allowed the Australian dollar to push higher off those overnight lows," he said.
"That abated some of the strong US dollar demand we've seen this week."
Mr Waterer said the market would focus on the release of weekly US jobless claims data and Philadelphia Federal Reserve manufacturing survey for May, to be released during Thursday night's offshore session.
Meanwhile, Australian bond futures prices were higher at noon.
At 1200 AEST on Thursday, the June 10-year bond futures contract was trading at 96.745 (implying a yield of 3.255 per cent), up from 96.730 (3.270 per cent) on Wednesday.
The June three-year bond futures contract was at 97.430 (2.570 per cent), up from 97.410 (2.590 per cent).