The Australian currency was lower at Wednesday noon after poor offshore trading overnight carried over into the local session.

At midday AEST, the Aussie was changing hands at 91.17 US cents, down from yesterday's close of 91.42 US cents.

Since 7am, the local currency has traded between 90.99 and 91.23 US cents.

The domestic currency spent most the morning trading in a tight range as investors recovered from the news Labor had enough support to form a minority government, according to Nomura Australia chief economist Stephen Roberts.

''Since the independents' announcement yesterday, there was a sort of pull back, but it held against the US dollar since then,'' he said.

On Tuesday, independent MPs Rob Oakeshott and Tony Windsor said they would support a minority Labor government, ending the 17-day parliament deadlock.

Mr Roberts said the Aussie had been depressed by US stocks, which slipped overnight due to concerns over the health of the European economy. The Dow Jones Industrial Average finished 1.03 per cent lower, while the broader S&P 500 index dropped 1.15 per cent.

''That pull back in the US last night is showing up today.''

Official data on Australian housing finance commitments for owner-occupied housing did not move the local currency.