The euro was hurt by signs that growth was slowing in the euro zone's largest economy, Germany.
Jonathan Cavenagh, Senior FX Strategist at Westpac Institutional Bank, discusses the movements of the Australian dollar, after China's HSBC flash PMI contracted for the third straight month.
Data showing a record euro zone trade surplus in January helped the euro rise against the dollar for the first time in three days.
The dollar steadied against major currencies on Thursday after being jerked higher overnight by a Federal Reserve message that a rate hike would be sooner than expected.
Sooner-than-expected U.S. rate hikes and weak Chinese data will weigh on the Australian dollar over the next 12 months, says Sam Henderson, CEO of Henderson Maxwell.
The dollar rose against the yen and euro on Wednesday, following the Federal Reserve's announcement it will further unwind monetary stimulus.
A modest easing of tension in Ukraine and a slight increase in U.S. Treasury yields sent the euro on Tuesday against the U.S. dollar and the yen.
The yen heads for its biggest weekly gain in more than a month against the dollar, on tensions in Ukraine and the Chinese economy.
Boris Schlossberg, Managing Director at BK Asset Management, says the European Central Bank's rare shift in stance changed trading sentiment for the currency. He also commented on the Aussie's recent rally.
Fears the crisis in Ukraine could intensify led traders to the safe havens of the Japanese yen and Swiss franc.
Investors can look to the New Zealand dollar for buying opportunities, in particular against the Australian dollar which is likely to head lower in coming months, says Ed Ponsi, Managing Director at Barchetta Capital Management.
Concerns about China and other developing economies weakened the Australian dollar and currencies closely linked to commodities markets.
The ECB's forward guidance may adjust policy to tighten the slack in the Euro zone economy, a senior ECB official said.
The U.S. dollar was supported by hopes U.S. job growth would pick up in the wake of last week's data.
Steven Englander, global head of G10 foreign exchange strategy at Citi, says the Chinese export data must be read very carefully and discusses the data's impact on the Australian dollar.
Commenting on Monday's rout in Australian resources stocks due to poor\ Chinese trade data, Philip Parker, Chairman & CEO, Altair Investment Management, says the selloff may have been overdone.
Sacha Tihanyi, Senior Currency Strategist at Scotiabank, says China's poor trade data is not the only factor weighing on the Australian dollar.
Unexpectedly strong non-farm payroll data boosted the dollar, despite the cold winter across much of the United States.
Dominic Bunning, FX Strategist at HSBC, says the Australian central bank's statement on Friday may not have much of a impact on dampening the Australian dollar's recent rally.
The euro added half a cent after the European Central Bank left interest rates unchanged.