The Aussie is trading in a narrow range as it takes a breather following recent falls.
At 12pm AEST, the currency was trading at US96.71c, down slightly from US96.73c yesterday.
OzForex chief currency strategist Jim Vrondas said the Australian dollar was consolidating after falling sharply over the past month.
"We're just in wait-and-see mode at the moment," he said. "It's taking a breather after the recent falls."
Mr Vrondas said the release of personal income and spending data in the US would be a key event for the Australian dollar on Friday night.
Meanwhile, traders are preparing for a busy week for the Australian dollar next week, with important events both here and in the US.
The Reserve Bank of Australia will meet on Tuesday, while the Australian Bureau of Statistics will release gross domestic product figures for the March quarter on Wednesday.
But the most important release for traders will be the release of non-farm payrolls figures for May in the US.
"It's certainly going to be a volatile week," Mr Vrondas said.
At 12pm AEST, the June 10-year bond futures contract was trading at 96.625 (implying a yield of 3.375 per cent), up from 96.595 (3.405 per cent) yesterday.
The June three-year bond futures contract was at 97.380 (2.620 per cent), level with its previous local close.
