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$A weaker after G20 meeting

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SYDNEY, Feb 18 AAP

February 18 2013, 5:18PM

The Australian dollar is more than half a US cent lower after a meeting of G20 finance ministers helped fuel a continued selloff in the Japanese yen.

At 1700 AEDT on Monday, the currency was trading at 102.95 US cents, down from 103.64 cents on Friday.

OzForex head of corporate dealing Jim Vrondas said the Australian dollar moved lower early on Monday, following a meeting of G20 finance ministers in Moscow over the weekend.

"That set the Aussie off on a weaker tone and we have continued lower from there," he said.

Currency traders watched the meeting closely for signs the group would take steps to prevent a so-called currency war of competitive currency evaluations.

But the meeting provided little in the way of action on the matter and Japan, whose controversial recent expansionary policies have seen the yen fall strongly against major currencies, avoided censure.

That saw the yen sell off on Monday, which also helped drag the Australian dollar lower against its US counterpart.

But Mr Vrondas said the Australian dollar found support around 102.75 US cents and had since recovered some ground.

"It's still within its recent range of 102.50 to 103.50 (US cents)," he said.

Mr Vrondas said the Australian dollar was likely to continue to weaken further over the coming week.

He said the release of minutes from the Reserve Bank of Australia's February board meeting on Tuesday and RBA governor Glenn Stevens' six monthly appearance before a federal parliamentary economic committee on Friday would weigh on the currency.

He said the two events would ensure markets continued to focus on the central bank's easing bias, and lift expectations of further interest rate cuts.