/www.fxserver.com/ THE Australian dollar softened today but held most of its recent gains while failing to forge new territory.
At 1200 AEST, the dollar was at $US0.6051/56, its low for the day so far, from $US0.6058/63 yesterday's close.
The local currency sustained a 15-point trading range to noon, from $US0.6068 to 0.6054.
A dealer at a local bank said the market was simply taking stock after a very busy week.
"There's been pretty hefty volatility – having been as low as 59.20 earlier in the week and now up as high as 60.77 yesterday," he said.
"That's pretty big for the Aussie and I think traders are just looking to finish up square after a tough week."
He said there were signs the local dollar should edge higher, although it was unlikely on the day, with plenty of buying interest in the low 60 US cents region to keep it supported.
He said options strikes were at 60 cents but the market was not gravitating there just yet.
"We may drift a few points lower today ... I think 60.70/75 is looking quite toppy so the importers are looking to sell there and there are some option related banks selling up there."
At 1200 AEST the Australian dollar on the Reserve Bank of Australia Trade Weighted Index was 55.0 from 55.1 points from yesterday's close.