The Australian dollar has fallen, but is trading in a tight range, as optimism wanes around a meeting of European leaders.
At 1200 AEST on Thursday, the Australian dollar was trading at 100.50 US cents, down from 101.15 at Thursday's close.
Commonwealth Bank currency strategist Joseph Capurso said there had been little moving the local currency.
"It's been a quiet morning, and the Aussie dollar's been trading in a tight range," he said.
"Markets are waiting for the final day of the EU (European Union) leaders' summit - and I think the risk is that they won't come up with strong action."
Mr Capurso said a negative or weak result from the summit - which ends on Friday - could push the Aussie dollar below parity again.
"I think that's where the risk is," he said.
"The euro would drop lower, and the Aussie would also fall lower."
The market would also be watching for news of China's official purchasing managers' index (PMI), and this could also weaken the Australian dollar, given expectations of a weaker PMI number.
"We expect the number to be below 50, so the Aussie might fall further, if we're right on that data."
Meanwhile, Australian bond futures prices were higher at noon.
At 1200 AEST on Friday, the September 10-year bond futures contract was trading at 97.045 (implying a yield of 2.955 per cent), up from 97.035 (2.965 per cent).
The September three-year bond futures contract was at 97.710 (2.290 per cent), up from 97.680 (2.320 per cent).
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