The Australian dollar has dropped almost a full US cent, after the US Federal Reserve said it might consider further market stimulus.
At 1200 AEDT on Thursday, the local unit was trading at 103.62 US cents, down from 104.52 cents on Wednesday.
CMC chief market strategist Michael McCarthy said the Aussie dollar had pulled back quite significantly, with commentary from the US central bank the probable driver.
"It's hard to say, because the asset classes reacted so differently to the Fed statement," he said.
"But I think it is the main factor for the currency.
"The Fed appears to be looking for ways to extend the bond-buying program; they're extremely dovish on rates."
In the minutes from its October 23-24 meeting, the US Fed said another bond buying program could be initiated to replace `Operation Twist', which expires in December, as a way of boosting the labour market.
Mr McCarthy said he didn't expect the Aussie dollar to move much more on Thursday, with little domestic data to influence it.
Meanwhile, Australian bond prices were higher at noon.
At 1200 AEDT on Thursday, the December 10-year bond futures contract was at 97.045 (implying a yield of 2.955 per cent), up from 97.015 (2.985 per cent) at Wednesday's close.
The December three-year bond futures contract was trading at 97.500 (2.500 per cent), up from 97.470 (2.530 per cent).