The Australian dollar has bounced on weaker than expected US gross domestic product (GDP) figures.

At 0700 AEST on Thursday, the local currency was trading at 92.89 US cents, up from 92.81 cents on Wednesday.

Data released overnight showed that the US economy ground almost to a halt in the first three months of 2014 because of the severe weather conditions.

GDP increased at an annual rate of 0.1 per cent, the slowest growth since the last quarter in 2012, and much weaker than analyst expectations of a 1.0 per cent pace.

The soft figures weakened the greenback and boosted the Australian dollar, Bank of New Zealand currency strategist Raiko Shareef said.

“The US GDP print was very weak compared to expectations,” Mr Shareef said.

Also in the US overnight, the Federal Reserve as-expected announced another $US10 billion cut to its monthly bond purchases, which now stand at $US45 billion a month.

“The Fed’s announcement had very little reaction from the market because it was pretty much as expected,” Mr Shareef said.

Mr Shareef said investors on Thursday would be looking forward to Chinese manufacturing data being released at 1100 AEST.

AAP