The Australian dollar has slipped against a weakened US counterpart, but still remains above 78 US cents.
At 0635 AEDT on Wednesday, the Australian dollar was worth 78.53 US cents, down from 78.64 US cents on Tuesday.
Westpac's Imre Speizer says the US dollar slipped overnight with little news flow to guide it, leading to a rise in the Australian dollar against it, but that lift was later relinquished.
"The US dollar fell overnight, amid little major news flow. US equities consolidated further .... (and) US bond yields were fairly stable," he said in a morning note.
"The USD index is 0.6 per cent lower on the day ... (the) AUD only rose slightly as the USD weakened, from 0.7860 to 0.7877, later retracing."
The only real event risk for the local currency on Wednesday would be the Westpac-Melbourne Institute consumer sentiment index which likely would show sentiment reflecting the recent increased market turbulence.
Mr Speizer said there was little possibility the Australian dollar could resume its lift on Wednesday.
"The past two-day rally is faltering, 0.7900 could be a stretch today."
The Aussie dollar has also slipped against the yen and the euro.
CURRENCY SNAPSHOT AT 0635 AEDT ON WEDNESDAY
One Australian dollar buys:
* 78.54 US cents, from 78.64 on Tuesday
* 84.58 Japanese yen, from 85.17 yen
* 63.61 euro cents, from 63.85 euro cents
(*Currency closes taken at 1700 AEDT previous local session)