The Australian dollar is nearly a third of a US cent lower ahead of the release of key monthly employment figures.
At 0700 AEST, the currency was trading at 101.71 US cents, down from 102.01 US cents yesterday afternoon.
Westpac New Zealand senior market strategist Imre Speizer said the Australian dollar traded in a fairly narrow range overnight with positive global sentiment preventing it from falling below the 101.55 US cent level it dropped to in the wake of Tuesday's interest rate cut.
"It's been stuck just above that level and it is probably being held by the global market sentiment which is pushing equity markets higher," he said.
The Reserve Bank of Australia cut the cash rate to a record low of 2.75 per cent at its monthly board meeting, which reduced demand for the currency.
Mr Speizer said the main driver for the currency would be the release of the Australian Bureau of Statistics' labour force figures for April at 1130 AEST.
An AAP survey of 14 economists shows a median forecast for the unemployment rate to be steady at 5.6 per cent for April with total employment growing by 11,000.
He said the currency was likely to move higher if the data showed stronger-than-expected jobs growth and fall if the figures were weaker than expected.
By AAP
