THE Australian dollar has opened above US105c after a flat offshore session that offered little direction for the currency.At 7am today, the Australian dollar was trading at US105.07c, compared with yesterday's local close of US105.08c.
During overnight offshore trade, the Australian dollar moved between a low of US104.92c and a high of US105.34c.
DailyFX chief strategist John Kicklighter said it was a quiet session on currency markets, as investors were waiting for the next catalyst.
"The markets themselves, not just the Aussie but really everything, is really lacking for momentum," Mr Kicklighter said from San Francisco.
"People are waiting to see what's going to take over in terms of the bigger fundamental themes."
In the absence of any fresh news to push the currency in either direction, the Australian dollar would continue to receive support given a robust economy and favourable interest rates compared to other countries, Mr Kicklighter said.
The prospects of an interest rate cut from the Reserve Bank of Australia (RBA) in February have dipped from a 60-65 per cent chance at the end of 2012 to 35-40 per cent currently, according to interest rate swap markets.
"The Aussie dollar in quiet days like this will always remain buoyant because it does have the higher yield," Mr Kicklighter said.
In economics news today, the Australian Bureau of Statistics will release building approvals data for November at 11.30am.
Market consensus was for approvals to have risen three per cent in the month.
Mr Kicklighter said currency markets were also expected to focus on Chinese trade data due out and the performance of equity markets in the region.