The Australian dollar fell in late trade on Friday, unable to hang on to the early gains it made in response to China's latest economic growth figures.
At 1700 AEST on Friday the Australian dollar was trading at 101.58 US cents, down from 101.64 US cents in late trade on Thursday.
The local currency enjoyed a bounce after China said its economy grew by 7.6 per cent in the second quarter of 2012.
The Australian dollar rose by almost one fifth of a US cent almost immediately after the Chinese data was released before settling into a tight trading range in the afternoon.
While the pace of gross domestic product (GDP) growth was the slowest seen in China in more than three years, it was in line with market expectations.
ANZ Banking Group foreign exchange strategist Andrew Salter said the Australian dollar enjoyed a brief rally amid relief that the data was not as bad as many feared.
But he said the local currency was now expected to continue its drift back towards parity with the US dollar.
"What those numbers show is that the Chinese economy is starting to slow down, and we could see the dollar fall towards parity next week," he said.
Keep reading - next article