Dollar higher despite weak building approvals

THE Australian dollar continues to trade higher but has lost some ground following the release of weaker builder approvals figures.

THE Australian dollar continues to trade higher but has lost some ground following the release of weaker builder approvals figures.

At 1200 AEDT on Monday, the currency was trading at 104.18 US cents, up from 103.99 US cents on Friday afternoon.

Easy Forex currency dealer Anthony Botros said the Australian dollar on Monday morning had rebounded from a low of 103.61 late on Friday, thanks to strong performances from stock markets in the US and Europe.

"It's obviously opened up a little stronger than where we were on Friday," he said.

But, Mr Botros, said the currency lost ground following the release of weaker-than-expected Australian building approvals figures at 1130 AEDT.

Australian Bureau of Statistics figures showed the residential building approvals fell 4.4 per cent in December.

"Based on that, the Aussie dollar's given up its gains from this morning," Mr Botros said.

The currency was likely to trade in a narrow range over the next 24 hours, ahead of the Reserve Bank of Australia's monthly interest rate decision at 1430 AEDT on Tuesday, he said.

"We're not expecting too many moves heading into tomorrow."

Meanwhile, Australian bonds futures prices were lower at noon.

At 1630 AEDT on Monday, the March 10-year bond futures contract was trading at 96.440 (implying a yield of 3.560 per cent), down from 96.500 (3.500 per cent) on Friday afternoon.

The March three-year bond futures contract was at 97.060 (2.940 per cent), down from 97.130 (2.870 per cent)."