The Australian dollar has lost 0.7 US cent, falling to a new seven-week low against a stronger US dollar.

At 0700 AEDT on Thursday, the Australian dollar was trading at 104.51 US cents, down from 105.23 US cents on Wednesday afternoon.

Overnight, the local unit fell as low was 104.29 US cents, its lowest level since January 20.

Westpac New Zealand senior market strategist Imre Speizer said the currency’s fall could be attributed to a stronger US dollar.

He said recent data, including stronger than expected US retail and employment figures indicated the world’s largest economy was in recovery mode.

“It (the Australian dollar) was sold because the US dollar was bought,” he said.

“We have seen a very strong run of data and the market is now starting to price in a sustainable US recovery.”

Mr Speizer said the Australian dollar was likely to continue falling over the coming weeks and could drop as low as 103.80 US cents this week.

With no major economic releases in Australia this week, Mr Speizer said, the next event that could move the currency significantly was the release of US inflation figures on Friday (US time).

“Friday might be another big day.

“If we get good data you’ll get more of the same – US dollar goes up, Aussie dollar goes down.”