The Australian dollar is higher, as optimism about the outlook for the US economy improves.
At 0700 AEDT on Friday, the local unit was trading at 89.97 US cents, up from 89.54 cents on Thursday.
HSBC's purchasing manager's index (PMI), released on Thursday, showed that Chinese manufacturing activity fell to its lowest level in seven months.
The local currency fell to a one-week low of 89.37 US cents on Thursday afternoon after the data's release.
BK Asset Management managing director Kathy Lien said the Australian dollar recovered on the back of improved market sentiment despite a mixed night of US economic data.
The Philadelphia Federal Reserve survey, released overnight, showed that manufacturing activity in the mid-Atlantic states of the US fell in February.
However, the US Markit PMI, also out overnight, showed that US manufacturing in February jumped to its highest level in almost four years.
"Based on the price action in the foreign exchange market this morning, foreign exchange traders are starting to become immune to weaker US data," Ms Lien said.
"Nearly every US economic report released over the past month has been distorted by the brutal winter weather.
"Temperatures will rise eventually and economic data will normalise, but we still have at least another month worth of softer economic data ahead."