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The Australian dollar was lower at noon as concerns on the US economy lowered investor sentiment for high-yielding assets.
At 1200 AEST on Thursday, the Australian dollar was trading at $US0.8933/35, down 0.17 per cent from Tuesday's close of $US0.8947/51.
Since 0700 AEST, the domestic dollar traded between $US0.8902 and $US0.8945.
Equity markets weakened overnight as reports suggested a slowing in the US economy.
In the US Federal Reserve's regional survey of the American economy known as the 'beige book,' the central bank said that the growth was slowing in some parts of the nation.
Meanwhile, orders for durable goods fell one per cent in June, the US Department of Commerce said.
It was the second straight monthly decline and the largest drop since August 2009.
Analysts had forecast a one per cent rise.
Senior dealer with online currency trader Easy Forex, Francisco Solar, said the weaker outlook for the US lowered investor optimism about an economic recovery in the world's largest economy.
'We had durable goods in the US weaker than expected,' Mr Solar said.
'We also had a Beige book weaker than expected with regards to the recovery in the US.
'We had a poor showing on stock markets in the US and the lead into Asia was to be on the back foot, that is just weighing on the Aussie (dollar).'
For the rest of Asian trade on Thursday, Mr Solar forecast the Australian dollar to move between $US0.8880 and $US0.8980.
Meanwhile, the Australian debt market was firmer at noon.
At 1200 AEST on Thursday, the yield on the Commonwealth Government April 2020 bond was 5.198 per cent, down from Wednesday's close of 5.212 per cent, while the May 2013 bond was at 4.602 per cent, down from 4.595 per cent.
On the Sydney Futures Exchange, the September 10-year bond futures contract was at 94.800, up from Wednesday's close of 94.795, while the September three-year bond futures contract was 95.310, where it closed previously.
