Dollar trading in narrow range

THE Australian dollar is trading in a tight range in a quiet morning on currency markets.

THE Australian dollar is trading in a tight range in a quiet morning on currency markets.

At 12pm AEDT today, the currency was trading at 103.87 US cents, slightly above its level of 103.84 US cents yesterday afternoon.

OzForex head of corporate dealing Jim Vrondas said, with US markets closed overnight for Thanksgiving and no major economic data releases, the Australian dollar had traded between 103.76 US cents and 103.92 US cents this morning.

"We're stuck in a pretty narrow range and I can't see that changing today," he said.

Mr Vrondas said news the International Monetary Fund was considering including the Australian dollar on its list of reserve currencies was likely to help lift its value next week.

He said markets had also become more confident US politicians would reach an agreement to avoid a so called 'fiscal cliff' of tax hikes and spending cuts due to apply in early 2013.

"Looking ahead, I think we could see the Aussie dollar push past that 104.20 US cent level," he said.

Meanwhile, Australian bond futures were lower at noon. At 12pm AEDT today, the December 10-year bond futures contract was at 96.795 (implying a yield of 3.205 per cent), down from 96.830 (3.170 per cent), yesterday. The December three-year bond futures contract was trading at 97.290 (2.710 per cent), down from 97.320 (2.680 per cent).