The Australian dollar was still lower on Tuesday noon even after regaining from a dip in morning trade caused by a report which claimed Europe's major banks had not been adequately stress-tested.

At midday east-coast time, the local unit was changing hands at 91.6 US cents, down from Monday's finish of 91.69 US cents. The Aussie was buying 77.13 yen, 71.46 euro cents and 59.54 pence.

Since 0700 AEST, the domestic dollar has traded between $US0.9136 and $US0.9177.

The Aussie lost a third of a US cent on this morning's report in the Wall Street Journal online, according to Commonwealth Bank chief currency strategist Richard Grace.

The report claimed Europe's recent stress tests on the strength of major banks understated some lenders' holdings of potentially risky government debt.

As part of the stress tests, 91 of Europe's largest banks were required to publicly reveal how much government debt from European countries they were holding on their balance sheets, the Wall Street Journal said.

Despite this, the Australian currency recovered because the analysis, which was sourced from the Wall Street Journal, is more specific to Europe, Mr Grace said.

The local dollar regained most of its losses soon afterwards.

Mr Grace said an announcement at 2pm by three federal independent MPs as to which side they would back to break the political impasse would not influence the domestic dollar, but the Reserve Bank of Australia's monthly interest rate decision at 2.30pm and accompanying statement would provide some direction.