Analysts say the Australian dollar's push to parity with the US greenback could ease pressure on the Reserve Bank to lift interest rates.

Strength in the local currency helps control inflation, reducing the need for higher interest rates.

Late last night the Australian dollar it hit 99.939 US cents. But at about 10:50am AEDT, it was buying around 99.04 US cents.

Commonwealth Bank chief currency strategist Richard Grace says the dollar will be a major topic of discussion at the Reserve Bank's November board meeting.

"They're not at all afraid of a high Australian dollar," he said.

"They in fact welcome it in doing the job of combating inflation, if it means they don't have to lift interest rates that little bit more.

"If you think about it from a macro point of view, 20 per cent of the economy is exporters. A high Australian dollar affects a significant proportion of that 20 per cent of the economy, but higher interest rates affect the remaining 80 per cent."

The US dollar continues to subside on the back of more gloomy economic news concerning the American economy.

America's trade gap with China hit a new record in August as the country's trade deficit rose by nearly 9 per cent to more than $46 billion.

A slight monthly increase in US exports was more than offset by imports of consumer goods and foreign oil.

The US dollar weakened further on the back of a labour department report showing an unexpected jump in the number of Americans filing for unemployment benefits.

Analysts say the dollar is under pressure as speculation grows about the likelihood of further intervention by the US federal reserve.

The Greenback is already trading at parity with the Canadian dollar.