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SYDNEY, Feb 18 AAP

February 18 2013, 5:36PM

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

At 1700 AEDT on Monday, the local 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 fell 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.

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.

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 of 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 local 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.

At 1700 AEDT, the Australian dollar was at 96.77 Japanese yen, up from 95.88 yen on Friday 77.16 euro cents, down from 77.60 euro cents.

Meanwhile, Australian bond futures weakened due to the sell-off in the yen.

"I think the market took (the G20 meeting) as a bit of a green light to keep selling the yen," JP Morgan interest rate strategist Sally Auld said.

"That has helped boost equity markets and has pushed bonds down."

At 1630 AEDT on Monday, the March 10-year bond futures contract was trading at 96.465 (implying a yield of 3.535 per cent), down from 96.500 (3.500 per cent) on Friday.

The March three-year bond futures contract was at 97.100 (2.900 per cent), down from 97.140 (2.860 per cent).

By Evan Schwarten