The Australian dollar has fallen following a report which said Australia's economy was vunerable to a significant slowdown in the mining sector.

Tthe Australian dollar was trading at $US1.0393, down from $US1.0473 on Wednesday.

Since 7am, the local currency has traded between $US1.0381 and $US1.0430.

A report from ratings agency Standards and Poor’s warning of the Australian economy’s reliance on the mining sector took its toll on the dollar, which is well off its January peak of $US1.0575.

S&P, which examined a number of single sector reliant countries, said Australia was at an intermediate risk of a slowdown in the resources sector.

OzForex head of corporate dealing Jim Vrondas said weak gross domestic product (GDP) data from the US had prompted a fall in the Australian currency.

‘‘We saw the discussion resurface about whether the US economy was entering another recession, or heading that way again,’’ he said.

‘‘That didn’t help the Aussie much.’’

Official data released in the US overnight showed the economy contracted 0.1 per cent in the December quarter.

Mr Vrondas said US data would continue to influence Australian bonds, with non-farm payrolls data due on Friday night (AEDT).

‘‘Tomorrow night we’ll have the next key event for the market, with payrolls data,’’ he said.

After that, he added, the focus would return to local events, with the Reserve Bank of Australia meeting on February 5 for its cash rate decision.

At its last meeting on December 4, the bank lowered the cash rate by a quarter of a percentage point, to three per cent.

AAP