Dollar stands its ground at noon

THE dollar was virtually unchanged at noon, but well supported by a survey which showed business confidence had spiked in February.

THE dollar was virtually unchanged at noon, but well supported by a survey which showed business confidence had spiked in February.

At midday (AEDT), the local unit was trading at US101.28c, only slightly higher from yesterday's local close of US101.27c.

Since 7am, the dollar has moved between a high of US101.32c and and a low of US101.15c, according to IRESS data.

ICAP senior economist Adam Carr said the local unit started the day lower after a poor overnight session, but was looking firmer at noon.

"Ever so slightly, we've retraced some of those loses," Mr Carr said.

The National Australia Bank business survey for February showed business confidence had risen 10 index points, to 14 points in the month.

A reading above zero indicates optimists outweigh pessimists.

Mr Carr said the figures gave the domestic currency a boost.

"It's pretty obvious that business confidence has been flattened by natural disasters and now that we're through that, it's game on," he said.

"That should help to lift the currency in trading this afternoon."

On Thursday, the Australian Bureau of Statistics will release labour force data for the month of February.

Mr Carr said currency traders would be closely watching the figures.

"Obviously the currency is going to swing like crazy, I'd imagine, on any result which is off consensus," he said.

Meanwhile, the local bond market was weaker at noon.

At noon on the ASX 24, the March 10-year bond futures contract price was 94.420 (implying a yield of 5.580 per cent), down from yesterday's close of 94.475 (5.525 per cent).

The March three-year bond futures contract price was 94.860 (5.140 per cent), down from 94.890 (5.110 per cent).