Australian dollar hits fresh low

By a staff reporter, with AAP

The Australian dollar has continued its decline, hitting its lowest level since June 4, 2012. 

At 0628 AEST Saturday morning, the local currency was trading at 97.39 US cents, having recovered slightly from the 97.28 US cents it was trading at earlier in the session.

The slight recovery also saw the dollar return to the 97.37 US cents it reached at 1700 AEST Friday.

The Australian dollar has solidified its position under parity versus the United States dollar amid concerns of China's economic outlook, a response to the federal budget and renewed strength from the US dollar.

ANZ foreign exchange strategist Andrew Salter said traders dumped the currency after it pushed below 98 US cents around noon on Friday.

Mr Salter said there were no signs the sell-off in the Australian dollar would end any time soon and expects it to fall to around 95 US cents.

"It would be a brave strategist to predict an end to it (the sell-off) at the moment," he said.

"The momentum is all downwards at the moment."