At 07:00 (AEST), the Australian dollar was buying 72.96 U.S. cents, down from 73.08 U.S. cents on Monday.
"The US dollar surged on much stronger than expected U.S. November manufacturing and services surveys," Westpac Bank economists said in a morning note.
"AUD/USD followed the USD trend to back below 73 U.S. cents."
At 09:30 (AEST), the local unit was buying 72.86 U.S. cents.
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