Just as the Australian dollar attempted to make a concerted rebound against the U.S. dollar this week, the prospect of further monetary easing in Australia has provided traders with another reason to dump the currency.
The Reserve Bank of Australia (RBA) on Tuesday left its key interest rate unchanged but maintained an easing bias.
(Read More: Australia Holds Fire on Rates, but for How Long)
That prompted the Aussie to give up an overnight gain of 2 percent against the dollar on a weak U.S. manufacturing survey and on Wednesday it hit a session low of $0.9603 after weaker-than-expected Australian economic growth data, moving within sight of a 19-month low hit last month.
"The fact that the Aussie dollar gave up all of that big bounce we saw on Monday against the U.S. dollar shows just how negative sentiment towards the Aussie is right now," said Ray Attrill, co-head of foreign exchange strategy at National Australia Bank.
"It is still the whipping boy of the currency market," he added.