At 12.00pm (AEDT), the dollar was trading at $US0.6785/91, down from Tuesday's close of $US0.6838/40.
During the morning, the local unit traded between a low of $US0.6776 and a high of $US0.6825.
The dollar opened lower at $US0.6814/19 at 0700 AEDT, as weak US economic data slightly dampened appetite for the high-yielding currency.
New US home sales dropped 2.9 per cent to 407,000 in November, the lowest level since January, 1991, the US Department of Commerce said.
Purchases of both new and existing houses declined 7.6 per cent in November to an annual rate of 4.43 million, the National Association of Realtors said.
The final estimate of third quarter US gross domestic product showed the US economy contracted 0.5 per cent in the September quarter, which was unchanged from the preliminary estimate.
On a brighter note, the University of Michigan/Reuters US consumer sentiment survey improved slightly in December.
The local currency continued to head lower during the morning, falling below $US0.680.
Custom House Global Foreign Exchange corporate risk manager Charles Wiggins said there was little activity behind the move.
"You've had three and a half months of non-stop activity and I think everybody has taken this opportunity to step back a little bit,'' Mr Wiggins said.
"Volumes have been extremely thin, pretty much from the start of this week.
"That's why we haven't seen as wild a swing on the currency as we may have thought we would get.''
The local currency market closes at 5.00pm today and will reopen on Monday, December 29.
In terms of Wednesday night's (AEDT) offshore session, it is an empty data calendar in Europe but some employment and inflation figures are due in the New York session.
US personal consumption expenditures price index (PCE) for November as well as initial jobless claims for the week ending December 20 will be published, along with durable goods orders for November.
Mr Wiggins said he expected spreads to widen on currency markets during offshore trading due to the lack of liquidity.
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