The Australian dollar has fallen over one US cent after sluggish national account figures raised the possibility of more interest rate cuts by the Reserve Bank of Australia.
At 1700 AEST, the local unit was trading at 95.83 US cents, down from 96.93 cents yesterday.
The Australian Bureau of Statistics said gross domestic product grew by 0.6 per cent in the March quarter, weaker than the 0.8 per cent rate economists had expected.
The annual pace of growth was 2.5 per cent, the first time it was below three per cent since the last quarter of 2011.
CMC Markets foreign exchange dealer Tim Waterer said the Australian dollar dipped after the release of the GDP report and fell again after a pessimistic report on the Australian economy by investment banking giant Goldman Sachs.
The most notable feature of the report was the forecast that the RBA will cut the cash rate in July and November.
"The GDP numbers would fall into the underwhelming category, they didn't miss the market by too much but they were less than what the market was expecting," Mr Waterer said.
"There seems to be a growing chorus of market participants expecting not one, but two, rate cuts by the end of the year.
"That would strip value out of the Aussie dollar."
Mr Waterer said a major driver for markets for the remainder of the week would be two employment reports from the US.
During the offshore session on Wednesday night, private sector jobs data for May will be published, which is a good indicator for the key US employment figures, non-farm payrolls, due on Friday.
