The Australian dollar has hit a fresh six-month low, barely keeping its head above 90 US cents following encouraging US economic figures.

Early on Monday, the local currency was trading at 90.10 US cents, down from 90.66 cents on Friday – its lowest level since March.

Solid US retail sales and consumer confidence figures last week are fuelling speculation that the US Federal Reserve will hike interest rates sooner, causing further weakness for the Australian dollar.

The local currency has also taken a hit from disappointing Chinese data, National Australia Bank senior currency strategist Emma Lawson said.

Official figures showed China’s industrial production growth slowed sharply to 6.9 per cent in August, its lowest level for more than five years.

“Unfortunately, and likely to weigh heavily on the Australian dollar on the open, the China data was not pretty,” Lawson said.

“Industrial production was much lower than expected.”

Lawson said the Australian dollar was likely to remain under pressure heading into this week’s US Federal Reserve meeting.