THE Australian dollar is lower on speculation about Chinese growth and further rate cuts by Australia's central bank.
At 07:00 AEDT,the currency was trading at$US1.0530,down from$US1.0534 yesterday afternoon.
BK Asset Management managing director Kathy Lien said the Australian dollar was strangely lower,given global market movements.
"We see several risk currencies--particularly the European currency performing extremely well,"she said.
"US stocks are up,bonds are down,and that should lead to some strength for the Australian dollar,but we're not seeing that strength."
Ms Lien said a possible change in China's growth focus for 2013 could be having an effect on the Australian currency.
"I think the reason the currency is underperforming is because we're hearing more about how China wants to target a lower rate of growth this year,"she said.
"That's raising a bit of concern for the Australian investors."
On Sunday,Chinese authorities said growth targets for the year ahead would be more focused on quality and efficiency,rather than simply fast-tracked growth,as in previous years.
Expectations of another cash rate cut from the Reserve Bank of Australia were also having an impact on the market,Ms Lien said.
"We had the RBA minutes come out yesterday,and even though they revealed discussion around postponing a rate cut,I think there's still an expectation that they will ease again at the next meeting,"she said.The RBA next meets in February.
At its meeting on December 4,the RBA cut the cash rate by 25 basis points to 3 per cent.