/www.fxserver.com/ THE Australian dollar has finished lower from yesterday's close and has held an extremely tight range through most of the local trading session.
At 1700 AEST, the Australian dollar was at $US0.6008/13 compared with 0.6031/36 at yesterday's close.
The local currency slipped overnight as the United States dollar rallied as US forces moved closer to Baghdad in the war in Iraq.
The Australian dollar has then proceeded to hold a very tight range over the course of the day, with very little acton as dealers tend to focus more on the performance of the US dollar and the developments in the war.
"In the Asian time zone ... it hasn't done very much at all," Commonwealth Bank currency strategist Alex Schuman said.
"It has consolidated here between $US0.6010-20 and really has barely broken out of that very narrow range.
"It really is absolutely impossible, the markets have no information to go on."
There was talk of some Japanese buying interest earlier in the day but with a lack of substantial buying outside of momentum trades, the Australian dollar was expected to struggle to make any headway.
The performance of the US dollar overnight, as well as any change in the Iraq situation, will be the key focus for the markets.
One strategist also noted that the recent outbreak of Severe Acute Respiratory Syndrome (SARS) was not expected to have a major impact on the Australian dollar, unless the disease reached pandemic proportions.
"Provided overall risk appetites remain reasonably healthy ... the net impact on (the Australian dollar) from all this in my view is likely to be very minor," Deutsche Bank currency strategist Richard Yetsenga said.