The Australian dollar is lower following the release of weaker Chinese manufacturing data on Friday and the onset of automatic spending cuts in the US.
At 6.30am AEDT today, the currency was trading at 101.99 US cents, down from 102.36 US cents on Friday.
The currency weakened on Friday night as traders in the US and Europe reacted to Chinese economic data which showed the country's manufacturing sector expanded at a slower pace in February.
Meanwhile, in the US, President Barack Obama reluctantly ordered a $US85 billion ($83.67bn) austerity drive after failing to reach an agreement with Republicans to prevent the automatic spending cuts.
US politicians still have about a month to intervene and stop the cuts, which take effect from early April, but news Republicans and Democrats had been unable to reach an agreement by March 1 strengthened the US dollar, a safe haven asset, against all major currencies.
