The Australian dollar is firmer but has lost momentum as investors began to worry about this week's US earnings season results.
At 1700 AEDT on Tuesday, the Australian dollar was trading at 90.38 US cents, up from 90.28 cents on Monday.
The local currency hit a one-month high of 90.84 US cents during early offshore trade but then lost its shine as analysts voiced concerns about upcoming US earnings season results, National Australia Bank currency strategist Emma Lawson said.
"US equities started to head lower substantially and that was brought about by lower earnings expectations which dragged the Aussie down," she said.
The Australian dollar, a risk appetite currency, appeared to fall as Wall Street suffered its worst one-day fall since September last year with the broad-based S&P 500 shedding 1.26 per cent and the Dow Jones Industrial Average losing 1.09 per cent.
On Wednesday morning Australian time, the biggest US bank JPMorgan Chase and Wells Fargo are reporting earnings.
American retail sales data for December covering the key Christmas holiday period will also be watched for signs on how the US Federal Reserve will taper stimulus measures, which would affect the US dollar.
On Tuesday, the local sharemarket finished 1.5 per cent weaker.