The Australian dollar has drifted lower as investors await the release of key Chinese economic data.

At 0700 AEST on Monday, the local currency was trading at 93.77 US cents, down from 94.06 cents on Friday.

The Australian dollar rallied well above 94 US cents last week following the US central bank’s downbeat view of the world’s largest economy.

But the currency was unable to maintain its highs and drifted lower, Bank of New Zealand strategist, Kymberly Martin, said.

“On Friday night, we tried to push above 94 US cents and there was resistance so we’ve dropped back to where we are today,” Martin said.

All eyes would now be on HSBC’s Chinese June manufacturing figures, to be released on Monday, she said.

“The market consensus is for a marginal improvement from 49.4 in May to 49.8 in June, so anything at that level or above would probably be quite positive for the Australian dollar,” she said.

“Any weakness would probably have a negative impact on the currency.”

AAP