At 12.00pm (AEST), the dollar was trading at $US0.8074/78, down from Friday's close of $US0.8149/54.
Since 7.00am, the unit moved between a low of $US0.8065 and a high of $US0.8100.
"It's come off a bit during the offshore session, mostly because of a recovery in the US dollar,'' said Stephen Roberts, chief economist at Nomura Australia.
"It was quite firm going back to Friday and stayed firm during our session.
"It's edged the dollar back a touch.''
Mr Roberts said the strength in the US dollar had held back rising prices amongst commodities.
The unit is considered a risk-sensitive currency and typically rises or falls in line with commodity prices.
Precious metals fell in offshore trade, leaving them lower for the week. Gold for August delivery fell $US21.30 to settle at $US940.70 an ounce, and July silver fell 61.8 cents to $US14.875 an ounce.
July copper fell 7.15 cents to $US2.3735 a pound.
"That's counted a little bit against the dollar,'' Mr Roberts said.
The recovery in the US dollar was spurred in Friday's offshore trade, by the Reuters-University of Michigan consumer confidence report coming in below market expectations.
The report showed US consumer sentiment improved slightly in June, but below market expectations: the index was up 0.3 index points in June to 69 points. Economists had expected the index to rise to 71 points.
The measure of consumer sentiment towards current conditions rose, but consumers were more pessimistic about future conditions. Inflation expectations for the year ahead rose to 3.1 per cent, from 2.8 per cent.
Mr Roberts said a lack of significant economic data would keep the local unit trading in a tight range around $US.08065 for the rest of today's session.
At 9.00am, the RBA's trade weighted index (TWI) was at 64.8, down from Friday's close of 65.1.
Meanwhile, the Australian bond market was stronger at noon.
At 8.30am, the yield on the Commonwealth Government March 2019 bond was 5.250 per cent, down from Friday's close of 5.553 per cent, while the yield on the April 2012 bond was at 4.385 per cent, down from 4.445 per cent.
On the Sydney Futures Exchange, the June 10-year bond futures contract price was 94.480, up from Friday's close of 94.475, while the June three-year bond futures contract was at 95.690, up from 95.600.
