At 07:00 (AEST), the Australian dollar was buying 77.93 U.S. cents, down from 78.36 U.S. cents on Wednesday.
"U.S. equities were rattled as the ascent in bond yields resumed. This saw the defensive U.S. dollar firm slightly, AUD/USD slipping to 0.7785," Westpac Bank economists said in a morning note.
"The U.S. dollar rose against most G10 currencies on the day. "
At 09:00 (AEST), the local unit was buying 77.78 U.S. cents.