The Australian dollar has taken another hit, this time from the weakest reading on Chinese manufacturing activity in six months.
At 1700 AEDT on Thursday, the Australian dollar was trading at 87.34 US cents, down from 88.02 cents on Wednesday.
The currency hit an intraday low of 87.12 US cents in the early afternoon when HSBC's barometer of Chinese manufacturing activity showed the first contraction since July 2013.
The final reading for January, known as the purchasing managers' index, of 49.5 points was below the key 50 point level separating growth from contraction.
Commonwealth Bank currency strategist Peter Dragicevich said the news about Australia's biggest trading partner hit the currency, which was already battling against renewed fears about emerging markets.
"It really didn't help sentiment," he said.
"We saw renewed concerns about developments in emerging markets and given Australia's position of having a current account deficit, that tends to see the currency underperform during periods of heightened global risk aversion.
"That's really been the catalyst for the reversal in the Aussie over the last 24 hours."
The US Federal Reserve's decision to dilute monthly stimulus spending by another $US10 billion did not hit the Australian dollar or boost the American greenback.
"The reaction to the announcement was as expected and we didn't see much reaction to the Aussie on the back of that," Mr Dragicevich said.
The Australian dollar hit a one-week high of 88.24 US on Wednesday as fears about emerging markets eased, but those worries returned on Thursday after South Africa's Reserve Bank made a surprise decision to raise its interest rate, amid fears of rising inflation.