The Australian dollar has dropped to a two week low as strong US economic data gives the greenback a boost.

At 0700 AEST on Wednesday, the Australian currency was trading at 92.74 US cents, down from 92.89 cents on Tuesday.

In overnight trade it fell as low as 92.68 US cents, the Aussie’s weakest point since August 21.

Westpac senior market strategist Imre Speizer said the major currencies are suffering from a bout of US dollar strength.

“Stronger US economic data boosted the US dollar,” he said.

“Most attention was paid to the ISM manufacturing report, which was stronger than expected, but so too was construction spending.”

US manufacturing in August grew at the strongest pace in more than three years, an Institute for Supply Management’s manufacturing index said on Tuesday night.

And, construction spending in America in July rose by the largest amount in more than two years.

Speizer said the Australian dollar has lost momentum because of the greenback’s rally and could go as low as 92.50 US cents.

However, he said much will depend on the outcome of the June quarter national accounts figures, out on Wednesday.

Economic growth is expected to have slowed to 0.4 per cent in the June quarter after spiking at 1.1 per cent in the first three months of the year.

AAP