Growing expectations of a rate cut next week have knocked the Australian dollar back below 76 US cents.

At 0700 AEDT on Wednesday, the local currency was trading at 76.16 US cents, down from 76.32 cents on Tuesday.

The local currency came close to a six year low overnight, reaching 75.91 US cents as falling iron ore prices fuelled expectations the Reserve Bank will cut rates on Tuesday.

“There’s been little relief for the Australian dollar/US dollar overnight,” National Australia Bank, senior economist, David de Garis said.

“It’s continued to eke lower in the face of still tumbling iron ore prices and the market increasing the probability of the RBA cutting rates next week.”

The iron ore price fell to a fresh low of $US51.35 overnight, de Garis said.

Meanwhile, market pricing for an April rate cut has reached 74 per cent, he said.

AAP