Here are other ways to play the weak Aussie trade

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As the Australian dollar continued its slide to a fresh three-year low against the greenback on Friday, analysts said there are other currencies that might make a better bet against the battered Aussie.

Ed Ponsi, managing director at investment firm Barchetta Capital Management, said he's taking a short position on the Aussie versus the Canadian dollar and would steer clear of the U.S. dollar, which could swing either way on the U.S. jobs data due later on Friday.

"The easy trade right now is the Aussie versus the Canadian dollar," Ponsi told CNBC Asia's "Squawk Box." "If you look at it this way - Australia supplies China, Canada supplies the U.S., so I'm basically playing the U.S. economy, which I love right now versus China's economy which I don't think very highly of."

Fears of a slowdown in China, Australia's largest trading partner, have weighed on the commodity currency, which has also been hurt in recent months by the prospects for an unwinding of U.S. monetary policy and more interest-rate cuts in Australia.

Paul Mackel, head of Asia currency research at HSBC, also backed selling the Australian dollar against the Canadian currency, saying the currency pair is a "clear sell" if you think the U.S. economy, Canada's biggest trading partner, is slowly gaining momentum.

"That [U.S. economy's improvement] should probably translate in to Canada as well," Mackel said. "Even the last employment number out of Canada seemed pretty healthy, so I think there's some good value in [selling] the Australian dollar versus the Canadian dollar."

Canadian government data in late July showed that the country added 8,500 nonfarm jobs in May, a nearly 1 percent gain from a year earlier.

Down and out

Dovish comments from Australia's central bank this week have raised expectations for an interest rate cut at a meeting next week, keeping the Australian dollar broadly weak.

(Read More: How low must Aussie go before the RBA backs off?)

The Aussie dollar is down more than 10 percent against the Canadian dollar, also known as the loonie, this year. It has slumped about 3 percent this week alone to about 0.9223 per Canadian dollar.

That compares with a more than 14 percent decline against the greenback this year. The Aussie dollar has tumbled almost 4 percent this week to hit a three-year low on Friday of $0.8889.

The Aussie also struck a fresh three-year low against the euro and sterling and is on track to post its largest weekly loss in two years.

(Read more: It seems the only is down for the Aussie)

Analysts said investors should also consider selling the Aussie against the euro.

HSBC's Mackel said the euro has had a powerful move higher against the Australian currency this year and that showed little signs of slowing.

—By's Rajeshni Naidu-Ghelani; Follow her on Twitter @RajeshniNaidu.