The Australian currency was slightly lower at midday after a lacklustre US lead.

At noon east-coast time, the local unit was trading at 89.75 US cents, slightly below yesterday's finish of 89.77 US cents. It was buying 77.25 yen, 69.89 euro cents and 57.47 pence.

Since 7am, the Aussie exchanged for 89.53 to 89.77 US cents.

The local unit was not doing ''too much'' during morning trade, according CMC Markets foreign exchange dealer Tim Waterer.

''We're not seeing much movement on the Asian markets today.''

''Yes, it was a weak (overnight) lead. But in percentage terms we didn't see as big a fall as we had become accustomed to this week.

Mr Waterer said there is nothing really driving the Australian dollar.

World stock markets plunged Thursday as an unexpected rise in US new jobless claims increased fears over the economy, with the investment community seeking for safety.

Dealers said data showing US jobless claims increased slightly, rather than declining, topped a gloomy series of numbers which have stoked worries that the economic recovery is in severe difficulty.

Mr Waterer said the Aussie was still in ''wait and see mode'' ahead of US retail sales tonight, Australian time.

''If there's anything that's going to potentially break the losing streak of stocks it could be a good result in US retail sales.''

He expects the Australian dollar to trade between 89.4 and 89.9 US cents during the afternoon.