Dollar closes flat on quiet trade

THE dollar has closed flat after a quiet domestic session, with investors focused on the release of local and overseas economic data.

THE dollar has closed flat after a quiet domestic session, with investors focused on the release of local and overseas economic data.

At 5pm, the local currency was at US105.53c, little changed from US105.48c at yesterday's close.

During the day, the dollar moved in a tight range between US105.80c and US105.49c.

The currency opened the Australian trading day at 7am at US105.61c after moving in line with gains on Wall Street during the overnight offshore session.

However, the currency drifted back towards US105.5c as market players stayed on the sidelines ahead of some important economic data releases both at home and abroad in the days ahead.

"It's very, very quiet,'' Rochford Capital director of market risk Derek Mumford said.

"The Australian (dollar) has just been drifting around really.''

"There is a lot of data out tonight in the United States and big numbers on Friday from China.''

Figures on US industrial production, inflation and housing were due for release during tonight's (AEDT) offshore session, with market players also expected to focus on any progress over the US debt ceiling.

Meanwhile, Chinese economic growth, retail sales and industrial production data was due out on Friday.

Moves were also limited ahead of domestic jobs data for December due out tomorrow.

The Japanese yen continued to appreciate, after comments yesterday from a Japanese government minister, who said a stronger yen was hurting the livelihoods of the Japanese people.

At 5pm, the dollar was at 93.03 yen, down 0.9 per cent from 93.87 yen previously.

On local data published today, Mr Rochford said the consumer confidence report from Westpac and the Melbourne Institute was in line with expectations, while new car sales figures were strong.