/www.fxserver.com/ THE dollar finished slightly weaker after an early rally was abruptly ended by weak economic data.
The currency then drifted down to end at its lows for the day.
At 1700 AEST, the Australian dollar was at $US0.6032/37 compared with 0.6035/40 at yesterday's close.
The currency drew support early on to reach a high of $US0.6060, a level not traded for three weeks, but started to drift down when the local data came out.
The Australian Bureau of Statistics reported that on a seasonally adjusted basis building approvals fell 4.0 per cent in February and the trade deficit widened to $1.873 billion.
NM Rothschild & Sons associate director foreign exchange Paul Macarounas said there was a key resistance level at $US0.6060/65 anyway for the local dollar but the weak data probably gave it the impetus to turn lower.
"I guess, with the weaker numbers, a long market just sold out of what they bought this morning and drifted off to the lows of the day," he said.
A weaker US dollar overnight enabled the Australian dollar to consolidate its position mid 60 US cents.
"It's steady, consolidating trade overall," Mr Macarounas said.
"I get the feeling there is good underlying demand around."
He said a large uridashi that was being worked through the market gave people the impression there was more buying to be done in the Australian dollar.
Overnight Nomura launched a record uridashi deal worth $1.665 billion.
The three-year uridashi bond issue was for the AAA-rated Kreditanstalt fuer Wiederaufbau (KfW).