The Australian dollar has tumbled further on the back of Reserve Bank comments and disappointing economic data.

At 0700 AEST on Wednesday, the local unit was trading at 75.44 US cents, down from 75.87 cents on Tuesday.

The Australian dollar dropped to 75.10 US cents in overnight trade.

BK Asset Management director of FX strategy Kathy Lien said the primary weight on the currency was the RBA comments on Tuesday that “an appreciating exchange rate could complicate the adjustment under way in the economy”.

“Investors interpreted this to mean discomfort with the current level of the currency and sent the Australian dollar tumbling lower as a result,” Lien said.

She also said that news on Tuesday that Australia’s trade deficit had widened to $3.4 billion in February and that service sector activity had contracted in March had put additional pressure on the currency.

The RBA’s remarks and the soft economic data came on top of weaker commodity prices, Lien added.

The only local risk event for the currency on Wednesday would be a speech by RBA assistant governor Christopher Kent in Hobart, although that’s scheduled for 1700 AEST.

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