The Australian dollar dipped to a 19-month low on Wednesday up to 95.28 U.S. cents late afternoon after the release of strong American economic data. The rate was the currency's weakest since Oct 5, 2011.

Besides pressure from the greenback, the Australian dollar was also under pressure from other currencies, trading at 97.5 yen and 74.3 euro cents while the New Zealand dollar registered a four-year high against the Aussie dollar at A$0.8395 on news that Wellington is negotiating with China to make their currencies directly convertible.

As a result of the weaker Australian dollar, Aussies are asking where the country's currency is headed over the next 12 months.

Among the U.S. economic indicators that lifted the greenback against the Aussie dollar are improved consumer confidence, more jobs created and increased housing values.

"Ten-year yields in the U.S., following on from the very good run of economic data, were reaching highs of 2.17. That is the highest level that we've seen in U.S. yields back to April of last year ... That is a support for the U.S. dollar. It's a very stronger dollar story that is driving the weaker Aussie," Brisbane Times quoted Westpac chief currency strategist Robert Rennie.

He added that the Australian currency could fall as low as 93 U.S. cents in the short term, but its movements would largely depend on forthcoming Australian economic data such as capex, the monetary board meeting of the Reserve Bank of Australia next week and Q1 GDP figures.

"It is a resurgent U.S. dollar, and that is a story that is hurting all currencies, including the Australian dollar," Mr Rennie added.

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