The Australian dollar traded slightly lower during holiday-thinned Asian trade as a dearth of local developments left traders waiting for key events offshore.
Topping the watch list are European Central Bank and US Federal Reserve meetings, along with key US jobs and Chinese manufacturing data.
The ECB is tipped by some analysts to cut its benchmark interest rate. Still, traders will be looking for its latest assessment of the region's debt crisis, widely blamed for stunting global growth.
In the US, the Fed isn't expected to alter its bond-buying program but any hint of a downbeat tone on the domestic economy could further weigh on the greenback and help support the Aussie dollar.
"While there may be more debate about when to start slowing quantitative easing, it's likely that the recent round of softer economic activity data and inflation in the US will have left the doves at the Fed in the ascendancy," said Shane Oliver, chief economist at AMP Capital.
The Aussie dollar shrugged off a fresh warning from Prime Minister Julia Gillard that government revenue would be about $12 billion less than forecast for the current fiscal year.
The latest warning on the state of the nation's finances comes ahead of the annual budget on May 14, when the government may unveil a deficit of as high as $25 billion, according to some analysts.
Weakening revenue raises the spectre of higher government borrowing, which might give a boost to the Aussie dollar as global investors are drawn to the nation's bonds.
However, net bond issuance may not increase too much due to maturing debt, said Annette Beacher, head of Asia-Pacific Research at TD Securities.
"So while deficits may be the new reality, low global yields for longer implies that we do not expect this supply to prompt a blowout in yields," she wrote in a note to clients.
