The Australian dollar gained half a cent on Tuesday night to push back to more than US70Â¢ after stabilisation in Chinese, European and United States stock exchanges, as well as a minor pick-up in commodity prices. 
The Australian currency has established a new trading range in the past week, staying between US69Â¢ and US70Â¢. It climbed from US69.7Â¢ in late trade on Tuesday to US70.5Â¢ on Wednesday morning. It was holding around that level on Wednesday evening.
"This is a short-term rally now the Chinese markets have been a bit more stable and the domestic data has continued with a relatively good tone," ANZ currency strategist Richard Yetsenga said.
The dollar received a modest boost from improved business conditions data released on Tuesday but appeared capped at US69.8Â¢. However, the gains continued throughout the night following rises in key equity markets.
Capital Economics said the stabilised markets, falling petrol prices and continuing resilience in the labour market were likely to maintain the same business conditions into the next month, keeping the dollar supported in its current range.
The dollar held on to its gains despite poor consumer confidence numbers released on Wednesday.
"News on the Australian dollar was noted by 15.5 per cent of respondents - the highest on the dollar since   June 2002," Westpac chief economist Bill Evans said.
The dollar is expected to continue to drop in late 2015 and into 2016.
"It's up a bit today but there is nothing to suggest the underlying trend has changed," Mr Evans said.
National Australia Bank senior currency strategist Emma Lawson said she expected the dollar to stay range-bound, from US68Â¢ to US70Â¢, until the middle of next week, when the US Federal Open Market Committee's   September meeting would take place.
The ANZ Bank is expecting the first US Federal Reserve rate rise next week and is forecasting the dollar to reach US68Â¢ by the end of 2015.
"Even if it's not in   September, it'll be this year," Mr Yetsenga said. "It's no longer a question of timing - we know US monetary policy has already turned and we're in a tightening cycle."
On Wednesday morning, the Commonwealth Bank followed the move started by investment banks and Westpac of downward revisions to the dollar. The Commonwealth Bank had been forecasting the dollar to reach US70Â¢ by the first quarter of 2016 but it has now dropped that to US65Â¢.
Currency strategist Richard Grace said the revision was a result of a strengthening US dollar and a push back in forecasts of China's economic recovery, which would hit neighbouring economies as well as Australia, by keeping commodity prices subdued, despite the minor increases experienced this week.