Aust dollar closes higher
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The Australian dollar has closed marginally higher ahead of the New Year's Day public holiday and amid uncertainty about a successful US budget deal.
At 1700 AEDT on Monday, the local unit was trading at 103.83 US cents, up from Friday's local close of 103.74 US.
During the morning, the currency moved between a low of 103.68 US cents and 104.06 US cents.
The Australian dollar opened the local trading day at 0700 AEDT at 103.66 US cents, having lost ground during weekend offshore trading, but ground up towards 104 US cents during the morning.
The move was not sustained however, as the currency gave up some ground in the afternoon to stay within its post-Christmas range between 103.3 US cents and 104 US cents in a quiet day's trade.
Rochford Capital consultant Richard Breen said little could be read into the day's move, given the lack of activity in the market at this time of the year.
Moreover, Mr Breen said those investors working during the festive season were inclined to stay on the sidelines ahead of any news regarding the US fiscal cliff.
"Until something happens there I don't think you will see many people taking large positions beforehand," Mr Breen said.
"As soon as we hear something from the US, that will really determine near-term direction.
"It's a very quiet and illiquid market today."
Negotiations between US President Barack Obama and legislators in the US Congress over a looming budget deadline look set to go down to the wire.
Talks centred on the best way to avoid a series of tax hikes and spending cuts, which were tipped to push the US economy back into recession, coming into effect in early 2013.
The measures, dubbed the fiscal cliff, would also have a significant knock-on effect on the world economy.