/www.fxserver.com/ THE dollar has given up some ground from the previous close but has not regressed too far as solid buying interest continues to help the local currency.
At 1700 AEDT, the dollar was at $US0.6142/47 compared with $US0.6162/67 at yesterday's close.
It surrendered some ground through the morning session and hit a low of $US0.6132 over the course of the day.
Strength in the United States dollar, coupled with a weaker- than-expected retail trade data release for January, took the dollar head lower.
The US dollar broke down through the 1.0960 level against the euro and some related selling emerged against the dollar.
This was compounded by the weak retail trade number, which showed a rise of 0.2 per cent, seasonally adjusted, in January, below expectations of a 0.7 per cent rise.
"It was a touch weaker today," National Australia Bank strategist Michael Jansen said.
"The retail sales data was a bit negative for the Aussie. (Although) it has recovered pretty soundly from that drop down."
Despite the reaction to the retail trade data, the dollar had improved in the afternoon session from its lows. Going forward, dealers said the US dollar would continue to be a key factor.
"US dollar is the primary focus and the other associated benefit of course is yield and that is just very, very strong at the moment," Mr Jansen said.
"(Uridashi issuance) is going to be a key positive going forward."
Uridashis are dollar-denominated bonds issued into the Japanese retail market. About $1 billion worth of issuance has occurred in the past week and this is helping to underpin the domestic currency.
At 1600 AEDT the dollar on the Reserve Bank of Australia Trade Weighted Index (TWI) was at 55.2 points from 55.5 at yesterday's close.