EDS: clarifying dollar movement in par 2 SYDNEY, Feb 22 AAP - The Australian dollar hit a four-month low in early morning trade as a combination of factors dampen market optimism. At 0700 AEDT on Friday, the local unit was trading at 102.36 US cents, virtually unchanged from 102.35 cents on Thursday. Earlier on Friday morning, Sydney time, it dropped to 102.21 US cents, its lowest level since October 15, 2012. Westpac New Zealand senior market strategist Imre Speizer said a lot of traders were waiting to buy the Australian dollar when it reached 102.25 US cents, so he was not surprised it quickly bounced higher from its overnight low. "I would have said 102.25 US cents was a pretty key level and we've tested it," Mr Speizer said from Auckland. The next big level below that is 101.50 US cents, so the Aussie dollar is looking bearish over the coming weeks. Mr Speizer said no single factor weighed on the Australian dollar overnight. "Firstly, there was the news that the Chinese government is curbing property speculation, prices were getting over-heated," he said. We also had data from the eurozone, data for consumer confidence and manufacturing activity, that was disappointing. Mr Speizer also said Thursday's release of the minutes of the US Federal Reserve's January policy meeting was making risk assets such as the Australian dollar and equities unattractive. The minutes sparked concerns about a possible early end to US economic stimulus measures. Mr Speizer said the key event for markets on Friday would be Reserve Bank of Australia governor Glenn Stevens' testimony to a House of Representatives committee, in Canberra. He added that the Italian elections over the weekend also would likely the impact currency markets.