The Australian currency recuperated on Wednesday as it attracted steady demand below 91 US cents, helping it withstand losses in Asian stocks.

At 5pm (AEST), the local dollar was changing hands at $US0.9158/61, up from Tuesday's close of $US0.9142/45.

Since 7am, it has traded between $US0.9099 and $US0.9160.

Pension and mutual funds, exporters, central banks and speculators were all said to be buying the Aussie when it reeled below $US0.91 in the past 24 hours.

Traders said Australia's resilient domestic economy strengthened demand. The local unit hit lifetime highs on the euro, which fell this week amid resurging fears about Europe's debt woes.

Some analysts, however, cautioned investors against reading too much into the local dollar's latest resilience.

Westpac analyst Robert Rennie said trade was quiet and that suggested buyers lacked conviction and the market was circumspect.

The Aussie only gained in the last few hours of trade, having spent most of the day hovering around $US0.9030, according to 4Cast Financial Markets head of research Ray Attrill.

"The first thing this morning there was a little bit of pressure in interest rate markets, and so the Aussie was getting a little bit of support."

He said the euro hit an all time low against the unit during the trading day.

In late trade, the euro dived to $1.3884, hurt by a late spurt in the Aussie against the US dollar where hedge funds and mutual funds were spotted among buyers.