The Australian dollar hit the US80c mark today before pulling back later in the trading day after a strong round of local data and some analysts are predicting that this is the beginning of a much larger rally.

Data out earlier today from the Australian Bureau of Statistics  showed the number of bulding permits at  -1.7 percent and although in negative territory was much better than analysts expectations for a figure of -5 percent.

This, along with the continuing strength in commodity prices as well as an overall rebound in the global economy is expected to help the Aussie dollar rise well above US80c,

"The unexpected large improvement in the world economy has supported Australia's commodity export prices for longer than expected," noted  CBA chief currency strategist Richard Grace

"Mining commodity prices are lifting despite increases in commodity supply. This means demand for commodities is increasing at a faster rate than commodity supply. We believe this is because G3 demand (that is, the US, the Eurozone and Japan) for commodities is just as important as Chinese demand." he added.

US President Donald Trumps inability to push through his political agenda such as tax reforms and spending on infastructure is expected to hurt the greenback and boost the Australian dollar as much of the US dollar's strength had already been priced into the market and is now being sold off.