The Australian currency finished lower as economic jitters gripped world markets and overshadowed the effects of promising local data.

At 5pm AEST, the domestic dollar was changing hands at $US0.8893/96, down from Monday's end of $US0.8979/82. It was buying 70.4 euro cents, 57.7 pence and 74.9 yen.

Since 7am AEST, the Aussie traded from $US0.8956 to $US0.8889.

The local dollar had been lifted by data showing growth in building approvals and retail sales in July, as well as a stronger than expected current account deficit, according to 4Cast Financial Markets head of research Ray Attrill.

"It got a little bit of support from those figures,'' he said.

"So we started off with things looking a little risk off.

"But now anything with a commodity/risk tag is getting hit in the early London market.''

The Australian Bureau of Statistics (ABS) during the local session released a set of largely positive data.

According to ABS, Australia's current account deficit was $5.64 billion in the three months to June, from a downwardly revised deficit of $16.457 billion in the March quarter. This was the lowest current account deficit since March 2002.

The ABS also published figures showing retail sales grew 0.7 per cent in July, while building approvals went up a 2.3 per cent.

Investors were expecting key US consumer confidence data for July from the Conference Board during the offshore session, said Mr Attrill.