The Australian dollar was trading lower at midday, as a bleak global economic outlook and a marginal rise in the unemployment rate dragged the local currency down.

At noon (AEST), the local unit was trading at $US0.8928/30, a decrease from Wednesday's finish of $US0.9044/46.

Since 7am, the local currency ranged from $US0.8920 to $US0.8976.

The Aussie slid through the US90c barrier overnight amid fears over the global economy following weak Chinese data and the US Federal Reserve's gloomy outlook on the American economy.

Australian labour force data issued today revealed the unemployment rate slightly increased to 5.3 per cent in July from 5.1 per cent in June.

This was a fairly healthy jobs report despite the higher jobless rate, according to RBC senior economist Su-Lin Ong.

She said participation, up at 65.5 per cent, is not far from record levels, and that is quite consistent with a healthy labour market as new entrants come in.

The dollar lost US0.25c after the jobs news at 11.30am.

Ms Ong said "The market is taking it as a weaker number just because of that move up in the unemployment rate."

"I guess there's a little bit of risk sentiment at the moment."

She said the Australian dollar was trading at some fairly strong levels, but there is just a general bit of fear about the global picture, adding the American economy and global expansion is going to keep the Australian currency under "a little bit of pressure."