The Australian dollar is virtually back where is was at the end of Monday's local session as traders await the release of inflation data.
At 0700 AEST on Tuesday, the local unit was trading at 103.19 US cents, a touch up from 103.18 cents on Monday.
Since 1700 AEST on Monday, the Australian dollar has traded between 102.73 US cents and 103.28 cents.
HiFX trading director Mike Hollows said the Australian dollar had been trading in a well-defined range overnight.
He said weak April manufacturing data from European countries, concerns over the Netherlands not passing its budget and the threat of a recession in Spain have all put downward pressure on the local currency.
"There's been a little bit of negativity come through there but, nonetheless, the Aussie has bounced back and we're waiting with a lot of interest for the CPI (consumer price index) numbers today," Mr Hollows said from Auckland.
"The Aussie did have a little bit of action. It did dip down to that 102.80 US-cent level, but bounced reasonable strongly in the last three or four hours."
On Tuesday morning, the March quarter CPI, the key measure of inflation, will be released, which is seen a crucial for the Reserve Bank of Australia's (RBA) next interest rate decision.
After the RBA's April board meeting, the bank's governor, Glenn Stevens, indicated a cut in the cash rate was likely in May if inflation was not too high.
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