The Aussie bounced from lows on Thursday after bets of further interest rate rises at home offset concerns that China may further tighten policy to rein in 16-month high inflation.

The Aussie's yield appeal also got a boost after the Reserve Bank of New Zealand said any rates rises there would not be as aggressive as they had been in the past.

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At close, it was at $0.9142, up off the day's $0.9113 lows, but slightly lower than yesterday's close of $0.9152.

It had taken a knock initially after data showed China's inflation quickened to 2.7 per cent in February, topping forecasts of 2.3 per cent.

That led some investors to worry a tighter Chinese monetary policy may hamper growth in the world's third-largest economy and a key driver of activity in Asia.

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