Time to book a US holiday - the Australian dollar has this morning lifted above 80 US cents for the first time in more than a year.

This morning, the Australian dollar was worth 80.13 US cents, up from 78.91 US cents yesterday.

Westpac's Imre Speizer said the Australian dollar had hit a two-year high overnight while minor tweaks to the Federal Reserve's position on inflation and tapering prompted a sharp fall in the US dollar.

"Broad-based US dollar weakness was the main story overnight, the DXY index down 0.7 per cent on the day in response to the FOMC (the Federal Reserve's Federal Open Market Committee)," Mr Speizer said in a Thursday morning note.

"AUD recovered from its CPI disappointment and Lowe speech, bouncing off 0.7878 to 0.8014 - a two-year high."

The local currency is also higher against the yen and the euro.