The French manager took over the reigns from Martin O'Neill after the Northern Irishman quit the Midlanders days before the start the season.
O'Neill had led Villa to three consecutive sixth-place finishes in the league, as well as taking the club to Wembley twice last year as they reached the final of the Carling Cup and the semi-final of the FA Cup.
With last season's stand-out performer James Milner sold to Manchester City in the summer, many Villa fans feared their team would slide down the table.
But Dunne, a £5million signing by O'Neill last season, believes his new boss has what it takes to keep Villa a force in England's top division.
The Republic of Ireland international said in the Daily Star: "We have had a good start considering the club was supposed to be in turmoil and everything had gone drastically wrong.
"But we still believe we are a top-six side. Although other teams will say that they have strengthened this season, we feel we had a squad that was good enough last season and is again this time around."