Disappointing US jobs data and further signs the Chinese economy is slowing have pushed the Australian dollar to its lowest level in 10 days.
At 1200 AEST on Monday, the Australian dollar was trading at, 102.10 US cents down from 102.55 US cents on Friday.
Earlier, the currency fell to 101.79 US cents, its lowest level since June 29.
OzForex head of corporate dealing Jim Vrondas said the currency fell following disappointing US Non-farm payroll data on Friday night, Australian time.
The figures showed the world’s largest economy generated only 80,000 new jobs in June, leaving the unemployment rate at 8.2 per cent.
“There is a bit of risk-aversion back in play following Friday’s events,” he said.
Meanwhile, data released on Monday showed China’s inflation rate fell to 2.2 per cent in June, another sign of an economic slowdown for Australia’s biggest trading partner.
“That has weighed on the Australian dollar a bit,” he said.
Mr Vrondas said that, following its recent strong performance, the Australian dollar was likely to struggle this week.
“Given the bullish run we had last week, things are looking quite heavy to me at the moment,” he said.
Meanwhile, Australian bond future prices were higher at noon.
At 1200 AEST on Monday, the September 10-year bond futures contract was trading at 97.085 (implying a yield of 2.915 per cent), up from 97.005 (2.995 per cent) on Friday.
The September three-year bond futures contract was at 97.660 (2.350 per cent), up from 97.570 (2.430 per cent).