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$A is a little lower against $US

AAP

The Australian dollar is a little lower against its US counterpart which has pared losses after data showed that US service sector growth had accelerated which could lead to a December interest rate rise.

At 0635 AEDT on Thursday, the Australian dollar was worth 78.63 US cents, down slightly from 78.67 US cents on Wednesday.

The US' Institute for Supply Management's non-manufacturing index rose to its highest level since August 2005 in September and the prices paid index reached its highest level since February 2012.

The data boosted the likelihood that the Federal Reserve will raise rates at its December meeting.

That report came after data on Monday showed that US factory activity surged to a more than 13-year high in September.

Following the Wednesday's data, the dollar index pared earlier losses to be down 0.7 per cent.

The Aussie dollar is higher against the yen and fairly steady against the euro.

CURRENCY SNAPSHOT AT 0635 AEDT ON THURSDAY

One Australian dollar buys:

* 78.63 US cents, from 78.67 on Wednesday

* 88.65 Japanese yen, from 88.55 yen

* 66.85 euro cents, from 66.83 euro cents

(*Currency closes taken at 1700 AEDT previous local session)