The Australian dollar was lower at midday after being dispirited by worse-than-expected Japanese economic growth news.

At noon (AEST), the local unit was trading at $US0.8887/89, weaker from Friday's finish of $US0.9025/28.

Since 7am, the domestic dollar ranged from $US0.8947 to $US0.8860.

The local dollar was depressed by softer Japanese economic growth data, according to Commonwealth Bank currency strategist Joseph Capurso.

"We were a bit weaker this morning and the main catalyst was the weaker than expected Japanese gross domestic product (GDP) data," he said.

Based on government data released today, Japan's economy experienced sluggish quarterly economic growth in the April-June period with an annualised pace of 0.4 per cent.

Mr Capurso said the investment community would shift its focus to the minutes of the Central Bank's August board meeting expected tomorrow.

The Reserve Bank left the cash rate on hold at 4.5 per cent at its August 3 board meeting.

Mr Capurso said a positive tone to the minutes could bolster the Australian dollar temporarily.

"It could be roses in the bunch of thorns," he said.

The debt market meanwhile was stronger at midday (AEST).

The yield on the Commonwealth Government April 2020 bond was 4.963, declining from Friday's finish of 5.048 per cent. The May 2013 bond decreased from 4.550 per cent to 4.478.

On the Sydney Futures Exchange, the September 10-year bond futures contract edged up from Friday's close of 94.955 per cent to 95.045 per cent. The September three-year bond futures contract climbed from 95.380 to 95.450.