The Australian national currency has fallen to the level of 102.79 US cents compared to 103.13 cents on Friday after weaker manufacturing data was reported in China.

Weak manufacturing data dampened sentiments as it raised concerns over the fragile recovery in the world's second largest economy. China is Australia's biggest trade partner and a huge market for its resources in the region. China's demand for resources has remained high in recent times resulting in higher demand for Australian expoerts.

The preliminary HSBC Manufacturing Purchasing Managers Index for China fell to 50.4 in February compared to 52.3 recorded in the month of January. The fall is believed to be mainly due to lower demand for Chinese exports in the global economy. The comprehensive index is seasonally adjusted and it shows changes in the sector. A rating of more than 50 shows expansion while a rating of below 50 shows contraction.

The Australian dollar had touched a low of 102.64 cents in the foreign exchange market in the country after weaker data was announced in China. The demand for Australian currency increased as it remained one of the only few advanced economies with top credit rating.