The Australian dollar is lower as traders take profits after the currency reached a five-month high on the back of Tuesday's central bank interest rate decision.
At 0700 AEST on Wednesday, the local unit was trading at 105.53 US cents, down from 105.76 cents at the end of the local session on Tuesday.
The Australian dollar rose past 106.00 US cents immediately after the Reserve Bank of Australia (RBA) made the widely-expected decision to keep the cash rate at 3.5 per cent at its August board meeting.
HiFX senior trader Stuart Ive said the Australian currency came under pressure in the absence of any significant drivers for markets.
"Nothing really dramatic has changed overnight. What we did see after the RBA announcement is that the Aussie tried to get through 106.00 US cents," Mr Ive said from Auckland.
"That prompted a little bit of profit taking.
"That's what led to the slide."
Mr Ive said he did not expect any dramatic movements in the Australian dollar ahead of Thursday's release of local employment figures for July.
There will also be a raft of Chinese economic data on Thursday, the most significant of which is the consumer price index (CPI) inflation, figures for July.
"A low CPI number gives China plenty of room, if need be, to stimulate their economy even further," Mr Ive said.
Keep reading - next article