The Australian dollar fell 0.3 of one US cent after the release of weaker than expected consumer price index (CPI) data.
At 1130 AEDT on Tuesday, the Australian Bureau of Statistics (ABS) announced that Australia's CPI rose 0.4 per cent in the December quarter, for an annual rise of 2.7 per cent.
Economists' forecasts for the CPI had centred on a rise of 0.7 per cent in the quarter, for an annual pace of 3.0 per cent.
At 1141 AEDT, the currency was at 99.3 US cents, compared with 99.74 cents just before the data was released at 1130 AEDT.
The currency was still higher than the 98.86 cents at 1700 AEDT on Monday.