Australian dollar lower on US Fed meeting minutes

The Australian dollar is lower after minutes from the US Federal Reserve's last meeting suggested intensifying debate over plans for a rate hike.

At 0700 AEST on Thursday, the local currency was trading at 92.87 US cents, down from 92.96 cents on Wednesday.

The Australian dollar dipped from above 93 US cents to as low as 92.85 US cents after the Fed minutes were released in the early hours of Thursday morning.

Federal Reserve policymakers showed increasing divisions in their last meeting over how much the US jobs market had improved, a key factor in deciding how soon they should tighten policy.

The minutes showed an intensifying debate over plans for raising interest rates, which gave the greenback a boost, National Australia Bank senior economist David de Garis said.

"The US dollar was given another modest leg up after some snippets from the July 29-30 FOMC meeting pointed to more lively debate over US labour market improvement and what that might mean for the timing of the start of rate normalisation," Mr de Garis said.

"The Australian dollar, along with other major currencies, came in for some modest selling against the US dollar in the wake of the minutes."

The main focus on Thursday would be on Chinese manufacturing figures, Mr de Garis said.

AAP