The Australian currency was lower by midday following losses on Asian equity markets.

At noon east-coast time, the local unit was trading at 90.73 US cents, lower than Tuesday's finish of 91.17 US cents. Meanwhile, it was buying 77.45 yen, 69.21 euro cents and 57.48 pence.

Since 7am the local currency ranged from 90.65 to 91.43 US cents.

Currency markets were on the defensive and that had negatively affected the domestic unit, according to CMC Markets foreign exchange dealer Tim Waterer.

''It slipped below 91 US cents due to the fact that we're seeing losses of one and two per cent on Asian equity markets so far today,''

''It's still finding good support at 90.50,'' Mr Waterer said.

Like Bank of New Zealand currency strategist Mike Jones, Mr Waterer believes China retail trade and industrial output would be crucial for the outlook of the Aussie.

Mr Waterer said Australian employment data tomorrow is another factor for the outlook for the rest of the week.

''Those two will have a significant impact and will determine which side of 90 US cents it will be by the end of the week.''

Mr Waterer predicted the Australian dollar to trade between 90.4 and 91.2 US cents for the rest of the afternoon.

Since 1700 AEST yesterday, the Aussie ranged from $US0.9061 to $US0.9161.