Aussie dollar lower against stronger USD

THE Australian dollar is more than half a US cent lower against a stronger greenback.

THE Australian dollar is more than half a US cent lower against a stronger greenback.

At midday AEST today, the Australian dollar was trading at 104.07 US cents, down from 104.64 US cents on Friday afternoon.

Commonwealth Bank currency strategist Joseph Capurso attributed the fall to renewed demand for the US dollar.

"Almost every currency is falling against the US dollar," he said.

Mr Capurso said the US dollar had probably been over-sold in the past few weeks due to the Federal Reserve's decision to introduce a third round of quantitative easing to support the American economy.

"What I think we're seeing is that over-selling being wound back, so the US dollar is very strong against all-comers today."

The Fed on September 13 (US time) announced it would spend $US40 billion ($A38.43 billion) a month on mortgage-backed securities in an effort to long-term lending rates lower.

Mr Capurso said demand for the US dollar was likely to put pressure on its Australian counterpart for most of the week.