The Australian dollar is back below 76 US cents following another fall in the iron ore price overnight.

At 0700 AEDT on Thursday, the local currency was trading at 75.97 US cents, down from 76.28 cents on Wednesday.

The Australian dollar was knocked down overnight, shedding Wednesday’s gains on the back of better than expected building approvals and Chinese manufacturing numbers.

National Australia Bank senior economist, David de Garis, said the currency got a boost overnight courtesy of some disappointing reports out of the US but ultimately sank lower.

He said iron ore prices slipped below US$50 per tonne overnight, reaching US$49.53.

“(The Australian dollar) did get a modicum of support after the softer US data, but was unable to sustain any momentum and in that sense has been a relative underperformer,” he said.

AAP