THE Australian dollar was lower at noon, losing gains under the pressure of waning commodity prices and some frank comments from Japan's foreign minister.

At 1200 AEDT, the Australian dollar was trading at $US0.9176/79, down from yesterday's close of $US0.9208/10.

Since 0700 AEDT, the local unit traded between $US0.9184 and $US0.9165.

The domestic currency gave up some ground to the US dollar after Japanese Finance Minister Naoto Kan said in his inaugural press conference in Tokyo that he would like the yen to weaken a bit more after its 9-per-cent drop from a 14-year high in November.

That caused a rush to buy US dollars and diverted investor attention from the risk sensitive Australian dollar, CMC markets foreign exchange dealer Tim Waterer said.

``The Aussie dollar was a little weaker overnight off the back of the US dollar's gun support after those comments from Japan,'' he said.

``The main event today has been quite a bit of selling in the gold price, down $US5 in Asian trading so far.

``That's what's been keeping a lid on the Aussie.

Mr Waterer said the unit would continue to trade in a tight range until the release of US non-farm payrolls during the offshore session.

US non-farm payrolls fell by 11,000 in November, the smallest amount of job losses since the start of the US recession in December 2007, the US Department of Labor said last month.

``The trend today is one of fairly cautious trading in anticipation of those numbers tonight, Mr Waterer said.

Meanwhile rises in financial stocks helped propel the Australian market to a 15-month high at noon.

At 1200 AEDT, the benchmark S&P/ASX200 index was up 29.5 points, or 0.6 per cent, at 4928.9 points, while the broader All Ordinaries index had risen 25.5 points, or 0.52 per cent, to 4956 points.

On the Sydney Futures Exchange, the March share price index contract was 36 points higher at 4,920 on a volume of 7,863 contracts.

Hubb Financial senior strategist Andrew Page said it had been a good morning for the market.

``The last time we were at these levels was 15 months ago, in late September 2008, which goes to show you how much of a bounce we have had,'' Mr Page said.

``We are seeing every single sector up, except for materials, and in materials it is the gold stocks doing the most damage there.

``It has been a day when we have seen the market re-take the past two sessions of losses, which follows a modest lead from Wall Street,'' he said.