At 12.00pm (AEDT), the local currency was trading at $US0.9024/26, little changed from Friday's close of $US0.9033/35.
During the morning, the unit moved between $US0.9034 and $US0.9060.
The dollar began the local trading week marginally higher at $US0.9044/51 at 7.00am and rose to its intraday high shortly after its positive start on local equity markets.
But the rally quickly ran out of steam, with the currency drifting back towards $US0.9030 as the local stock market gave back some gains from the open.
"It does seem to be tracking equities, with a lack of any domestic data and Japanese holidays,'' OzForex manager of corporate business Jim Vrondas said.
"It's been relatively subdued.''
Japanese markets were closed for the national health and sports day public holiday.
Later today (AEDT), the two main North American markets will also be shut due to public holidays. US markets are closed for Columbus Day and the Canadian market is off for Thanksgiving.
The US dollar was stronger during Friday night's (AEDT) offshore session after US markets reacted to comments the previous evening from US Federal Reserve chairman Ben Bernanke.
Dr Bernanke told a Federal Reserve conference in Washington that the US central bank would lift interest rates as the economy recovered.
"As economic recovery takes hold, we will need to tighten monetary policy to prevent the emergence of an inflation problem down the road,'' Dr Bernanke said.
Mr Vrondas said the market "might be getting a little bit ahead of itself'' regarding any possible rate hikes.''
"That talk from Bernanke was for some point down the track. Not now,'' Mr Vrondas said.
"I don't expect it to have any sort of lasting affect.''
Mr Vrondas said he expected the dollar to trade hold above $US0.9000 for the rest of today's Asian session.
"Since we been through $US0.9000, it hasn't been back below it,'' Mr Vrondas.
The Reserve Bank of Australia's trade weighted index (TWI) was at 69.7, up from Friday's close of 69.6.
Meanwhile, the Australian bond market was weaker. The yield on the Commonwealth Government March 2019 bond was at 5.353 per cent, up from Friday's close of 5.209 per cent, while the yield on the April 2012 bond was at 4.997 per cent, up from 4.882 per cent previously.
On the Sydney Futures Exchange, the December 10-year bond futures contract price was at 94.590, down from Friday's close of 94.720, while the December three-year bond futures contract was at 94.830, down from 94.940 previously.
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