The Australian dollar has clawed back some ground after going close to falling below 69 US cents. At 1700 AEST on Monday, the local unit was trading at 69.33 US cents, down from 69.83 cents on Friday.
Early on Monday morning, it dropped as low as 69.09 US cents, its weakest level since April 2009.
That was caused by the latest US jobs figures, released late last week, which have seemingly increased the chances the US Federal Reserve will lift its interest rate later this month. America's unemployment rate fell to 5.1 per cent, the lowest level since early 2008, after the economy added a modest 173,000 new jobs in August.
"The eagerly awaited US payrolls report was strong enough to tip the scales towards a Fed rate hike later this month, and consequently dented risk appetite," Westpac strategist Imre Speizer said.
"The overall tone of this report ticks the jobs box for the Fed, meeting their requirement for some further improvement in the labour market."
But the local currency rose in local trade on Monday, in a relatively quiet session ahead of the Labor Day public holiday in the US. IG chief market strategist Chris Weston said the modest rebound came because the local currency had been oversold in the past week.
At 1700 AEST, the Australian dollar was at 82.72 Japanese yen, down from Friday's close of 83.48 yen, and at 62.24 euro cents, down from 62.73 euro cents. The Australian bond market also fell due to the US jobs figures.
"The eagerly anticipated payrolls data on Friday night was good enough to keep alive expectations of a September rate hike from the Fed and this weighed on risk appetites," St George senior economist Jo Horton said.
At 1630 AEST on Monday, the September 2015 10-year bond futures contract was trading at 97.305 (implying a yield of 2.695 per cent), down from 97.340 (2.660 per cent) on Friday.
The September 2015 three-year bond futures contract was at 98.210 (1.780 per cent), down from 98.260 (1.740 per cent).
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