The Australian currency was nearly one US cent lower by noon as poor US data forced investors to seek safe-haven assets.

At midday east-coast time, the domestic dollar was exchanging at 89.06 US cents from yesterday's finish of 89.84 US cents. The Aussie was also buying 76.02 yen, 69.52 euro cents and 57.12 pence.

Since 7am, the local unit ranged from 89.33 to 88.87 US cents.

The domestic currency had had a poor day's trade since poor US jobs and manufacturing data were released overnight, according to CMC markets foreign exchange dealer Tim Waterer.

''In summary we had a disappointing run of data out of the US and that's made for poor Aussie dollar buying.''

''People are moving into the US dollar in defensive play.''

Poor US jobs and manufacturing data announced during offshore trade weakened investor sentiment for risk and sent the domestic currency to its inter-session low, according to Bank of New Zealand currency strategist Mike Jones.

The US Labour Department revealed the number of Americans filing new weekly claims for jobless benefits soared unexpectedly to 500,000, the highest level in nine months, while the Philadelphia Federal Reserve said its index of current activity plunged for the first time since July 2009. The index slid to -7.7 from a 5.1 in July.

New orders and shipments activity also lagged in August, with index figures for new orders at -7.1 and shipments at -4.5.

The news sent US stocks into the red before depressing sentiment in the local share market.

The benchmark S&P/ASX200 index lost 0.84 per cent, at 4441.3 points. The broader All Ordinaries index, meanwhile, had fallen 0.82 per cent to 4472.6 points.

Mr Waterer expected thin trade heading into the weekend with uncertainty in the outcome of the August 21 federal election.