An above-forecast result for local retail sales in March gave the dollar a lift after the release of data at 11.30am, Mr Solar said.
Australian retail trade at current prices rose 2.2 per cent in March to a seasonally adjusted rise of 0.5 per cent, theAustralian Bureau of Statistics (ABS) said.
Some investors were becoming nervous ahead of the release of the results from the US Government's stress tests of American banks, due on Friday morning (AEST), Mr Solar said.
"There is some risk tied to those stress tests, especially as they were pushed back from May 4,'' he said.
Mr Solar forecasts the dollar to trade between $US0.7315 and $US0.7415 during the rest of the Asian session.
At noon, the RBA's trade weighted index (TWI) was at 60.3, down from yesterday's close of 60.7.
Meanwhile, the Australian bond market was firmer. The yield on the Commonwealth Government March 2019 bond was 4.750 per cent, down from yesterday's close of 4.825 per cent, while the yield on the April 2012 bond was at 3.638 per cent, down from 3.703 per cent.
On the Sydney Futures Exchange, the June 10-year bond futures contract price was 95.250, up from yesterday's close of 95.185, while the June three-year bond futures contract was at 96.375, up from 96.315.
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