The Australian dollar is weaker as traders await Chinese industrial production data.
At 12pm (AEDT) on Wednesday, the local currency was trading at US76.27c, down from US76.47c on Tuesday.
The unit hit US76.04c on Tuesday night, which was the lowest point since May 2009, and approached those levels again on Wednesday morning.
The currency had risen from its morning lows by lunchtime as traders prepared for the early afternoon release of Chinese industrial production data for February.
But the Australian dollar could fall below US76c if the results from Australia’s biggest trading partner prove worse than market forecasts of 7.7 per cent annual growth, Easy Forex currency dealer Andreas Tjahja said.
“China is one of the biggest importer of our goods so, definitely, if there is lower industrial production, the sentiment will continue to worsen for the Australian dollar,” he said.
The Australian dollar briefly fell on Wednesday morning after assistant governor of the Reserve Bank Christopher Kent said the currency was still high.
Meanwhile, Australian bond futures prices were firmer.
The March 2015 10-year bond futures contract was trading at 97.465 (implying a yield of 2.535 per cent), up from 97.365 (2.635 per cent) on Tuesday.
The March 2015 three-year bond futures contract was at 98.125 (1.875 per cent), up from 98.050 (1.950 per cent).