The Australian dollar was trading at $US1.0324, down from $US1.0385 on Friday afternoon.
Easy Forex currency dealer Tony Darvall said the currency fell on Monday morning, in line with falls across Asian stock markets.
"It's opened weak in Asia and it's a pretty ominous sign because it finished the US session on Friday lower as well," he said.
The currency's fall mirrored drops on Asian and domestic stock markets, the ASX 200 was down 0.51 per cent at noon while Japan's Nikkei had dropped 1.24 per cent.
Mr Darvall said concerns about China's slowing economy and slowing bond yield had hurt the currency.
Official Chinese data released on Friday revealed gross domestic product growth slowed to an annualised rate of 8.1 per cent in the March quarter, below the 8.4 per cent forecast by economists.
Meanwhile, Spanish bond yields have risen over the past few weeks, re-igniting concerns it may require a bailout from the European Union.
Mr Darvall said the negative sentiment could drive the Australian dollar to parity with its US counterpart by the end of the month.
"It could actually be the catalyst for a parity test."
"It has been taking the Aussie dollar about a week to move down 100 pips (one US cent) later so at that rate we could hit test parity around the end of the month."
Meanwhile, Australian bond futures were higher at noon.
The June 10-year bond futures contract was trading at 96.260 (implying a yield of 3.740 per cent), up from Friday's close of 96.220 (3.780 per cent)
The June three-year bond futures contract was at 96.840 (3.160 per cent), up from 96.770 (3.230 per cent).
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