The Australian dollar fell a quarter of one US cent, before rebounding sharply following the release of domestic capital expenditure data on Thursday morning.

At 1130 AEDT, the Australian Bureau of Statistics announced that Australia's new private capital expenditure fell 1.2 per cent in real terms, seasonally adjusted, in the December quarter.

The median market forecast was for a rise of one per cent for the quarter.

At 1130 AEDT, the currency was at 102.00 US cents, down from 102.27 US cents shortly before the data was released.

But the currency rallied to 102.51 US cents by 1138 AEDT as investors looked more closely at the figures, which showed investment in mining is likely to increase in the 2013/14 financial year.