The Australian dollar is lower despite a strong rally following the release of higher than expected inflation figures.
At 1700 AEDT, the local unit was trading at 96.53 US cents, down from 96.55 cents yesterday.
The Australian dollar hit a five month high of 97.58 US cents during the day after the release of the September quarter consumer price index (CPI) figures.
The CPI, the key measure of inflation, rose 1.2 per cent in the September quarter, for an annual rate of 2.2 per cent - stronger than the 0.8 per cent quarterly rise and 1.8 per cent annual rise forecasted by 11 economists surveyed by AAP.
The stronger figures further reduced the likelihood of a cash rate cut at the Reserve Bank's November board meeting, economists said.
ANZ head of global markets Richard Yetsenga said the Australian dollar then fell back on price action and Asia-related factors.
"I think the move this afternoon tells you more about positioning than the news flow," Mr Yetsenga said.
"People were thinking that just because the United States Federal Reserve was on hold, asset prices globally would kind of go back to where they were earlier in the year.
"Once the Australian dollar came back through 97 US cents, that started to trip some stop-loss positions and that triggered a sharper move in the currency."
