THE dollar was lower at noon as concerns about a recovery in the global economy continued to hamper demand for growth assets.
At 12pm AEDT, the dollar was trading at $US0.8852/55, down 0.44 per cent from Friday's close of $US0.8891/95.
Since 7am AEDT, the local unit has traded between a five-week low of $US0.8791 and $US0.8865, according to IRESS data.
The dollar started the trading week lower following a weak session for high-yielding assets during Friday's offshore trade.
US equities fell on Friday on ongoing concerns over an economic recovery.
Commonwealth Bank currency strategist Joseph Capurso said the Australian dollar regained some ground during morning trade after Friday's sell-off.
"It is a bit of a correction from those substantial moves on Friday when you saw the Aussie lose a bit more than a (US) cent," Mr Capurso said.
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"There has not been much new news in Asia this morning."
A stronger-than-expected rise in Australian house prices had little impact on the domestic unit, Mr Capurso said.
The Australian house price index rose 5.2 per cent in the December quarter, the Australian Bureau of Statistics said today.
It was above market forecasts for a 3.5 per cent rise during the fourth quarter.
In the year to December, the house price index rose 13.6 per cent.
Local trade on currency markets would remain subdued ahead of the central bank's decision on interest rates tomorrow, February 2, Mr Capurso said.
The Reserve Bank lifted the overnight cash rate by 25 basis points to 3.75 per cent at its last board meeting on December 1.
This followed similar moves in October and November.
"Basically, people are on the sidelines until tomorrow with the RBA," he said.
He said that surveys of economists he had seen had all of them picking a 25 basis point rise, "but the financial markets are less sure with them punting around a 70 per cent chance."
Mr Capurso said he would be "stunned" if the RBA did not lift the cash rate tomorrow.
"The economy is still strengthening and we're fast running out of unemployed workers, which spells inflation down the track," he said.
"I cannot see them pausing as interest rates are far too low."
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