THE dollar was lower at noon in thin trade as financial markets await the release of a key employment report in the US.
At 12:00 (AEDT), the dollar was trading at $US0.9005/07, down 0.12 per cent from yesterday's close of $US0.9015/18.
Since 07:00 AEDT, the local unit traded between $US0.8982 and $US0.9012.
Senior dealer with online currency trader Easy Forex, Francisco Solar, said the dollar traded in a narrow range following mixed economic data in the US overnight.
"We had some US economic data overnight which was a bit of a mixed bag,'' Mr Solar said.
"It was a lacklustre night overnight, hence people pared back some of those gains we saw earlier in the day.''
Government reports showed initial claims for jobless benefits in the US fell by 29,000 to 469,000 for the week ended February 27 while US factory orders rose 1.7 per cent in January, boosted by demand for new aeroplanes.
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But a private report showed pending home sales in the US dropped by 7.6 per cent in January.
Currency markets would remain quiet before the release of the US non-farm payrolls report for February, Mr Solar said.
Financial markets expect the US unemployment rate rose to 9.8 per cent from 9.7 per cent and that employers cut a net total of 50,000 jobs.
"That is the key one and it should set the tone for the short-term,'' he said.
''...You would expect subdued trading until then,'' he said.
Mr Solar forecast the dollar to trade between $US0.8950 and $US0.9050 for the rest of the Asian session.
Dollar dips lower at noonPrice drop means low interest rates
