The local currency was trading at $US0.8718/23 at noon, sliding 0.17 per cent from yesterday's close of $US0.8734/37. The dollar exchanged between $US0.8690 and $US0.8728 from 7am.

According to Senior corporate dealer with online currency trader EasyForex, Francisco Solar, the Australian currency had traded in a tight range during the morning session in the absence of local economic data to provide direction.

It was slightly lower at the start of the domestic session at 7am following a languid session for equities and commodities in New York trade.
Wall Street ended marginally lower overnight.

The broader-based Standard & Poor's 500 index closed down 0.2 per cent, while the Dow Jones Industrial Average was 0.05 per cent lower.

Mr Solar said from Cyprus, "It was a little bit weaker earlier this morning in having a look below 87 (US) cents on the back of some weakness in the euro and also some commodity prices coming off overnight."

"There was a bit of a pullback in equity markets and that was probably a bit of a cue for the Aussie to pare back some of its gains of late."

"As soon as it reached below 87 (US) cents, it quickly bounced back."
The local currency was reinforced once equity markets in Asia opened firmer today, he said.

Australia's benchmark S&P/ASX200 index went up 0.31 per cent by 12.05pm, while Japan's Nikkei-225 index increased by 0.53 per cent.

"There does seem to be a bid tone, with Asian markets faring quite nicely to what Europe did yesterday," he said.

Mr Solar forecasts the dollar to trade between $US0.8740 and $US0.8665
for the rest of the local session today.

"This tight trading range will probably stay with us for the rest of Asia (today)," he said.