The Australian dollar is firmer after Federal Reserve chief Janet Yellen said the tapering of stimulus measures may change should the US economy weaken.
At 1200 AEDT, the local unit was trading at 89.63 US cents, up from 89.42 cents on Thursday.
The Aussie dollar rose overnight after having fallen to a three-week low on Thursday following the Australian Bureau of Statistics' release of data showing that business investment fell 5.2 per cent in the December quarter.
OZForex chief currency strategist Jim Vrondas said Dr Yellen's Congressional testimony helped boost the Aussie.
"The Aussie firmed on US dollar weakness after Janet Yellen's comments about the pace of tapering not necessarily being set in stone," he said.
"The Fed will assess the economic conditions and if they deem the weak data, that we've seen recently, is more than just weather-related, then they'll consider slowing the pace of tapering."
Preliminary US gross domestic product (GDP) data will be released tonight, Australian time.
Mr Vrondas said the market expected GDP to contract from 3.2 per cent, on a quarterly basis, to 2.5 per cent.
"If there is a lower preliminary GDP reading then that could cause more US dollar weakness because it may add to the possibility of the Fed slowing down tapering," he said.
Meanwhile, Australian bond futures prices are slightly firmer.
At 1200 AEDT on Friday, the March 2014 10-year bond futures contract was trading at 96.015 (implying a yield of 3.985 per cent), up from 96.000 (4.000 per cent) on Thursday.
The March 2014 three-year bond futures contract was at 97.130 (2.870), up from 97.120 (2.880 per cent).