As debt concerns flood Europe and the market awaits central bank’s meeting for the month of May, the Australian dollar was more than one US cent lower at noon.

The Australian dollar was trading at 105.61 US cents, down from 106.77 cents on Friday, at 1200 AEST today.

The currency opened the day at one US cent weaker, after investors were startled by reports from German newspaper Die Welt that Germany was supporting a streamlining of Greek debt.

According to the Australian Bureau of Statistics (ABS), the number of home loans approved in March fell 1.5 per cent, to a seasonally adjusted 44,968.

Forecasts from different economists had focused on a 2.0 per cent increase in housing finance commitments for the month.

ICAP senior economist Adam Carr explained the data was significant but made no impact on the currency market.

"That's fair enough because I don't think the RBA (Reserve Bank of Australia) will be swayed by that data," Carr said.

"Lending is weak and they've known it's weak, notwithstanding the fact that there's some seasonal adjustment problems with the data," he added.

The RBA's stance on monetary policy would probably not be changed after Monday's data release, he said.

"You'd be hard-pressed to argue that rates, where they are, are weighing heavily on the (housing) market and I think it's more just a consumer choice. They don't want to buy houses - they're expensive and house price growth is non-existent. So why would you buy?" Carr related.

On Tuesday, the RBA releases minutes for its May board meeting. The RBA kept the cash rate steady at 4.75 per cent in the meeting.

Currency traders are expected to sit back until the minutes are released. European finance authorities are due to meet overnight to deliberate on Greece's sovereign debt woes.

Regarding the issue, Carr said, "It's in no one's interests for Greece to default or to leave the euro, least of all Greece, or even Europe. I think they'll come to an agreement. I'm very confident of that, just because the costs of not coming to an agreement are, for the whole European Union, atrocious."

The Australian dollar is foreseen to trade between 105.26 US cents and 105.83 US cents for the rest of Monday's local session.

At 1200 AEST on Monday, the June 10-year bond stocks contract was exchanging at 94.665 (implying a yield of 5.335 per cent), up from 94.630 (5.370 per cent) on Friday.

Moreover, the June three-year bond stocks contract was at 94.960 (5.040 per cent), up from 94.920 (5.080 per cent).

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