The Australian dollar has closed lower, drifting back towards 102 US cents as global markets poured back into the US dollar after a positive US jobs report.
At 1700 AEDT on Monday, the Australian dollar was trading at 102.18 US cents, down from Friday's local close of 102.43 US cents.
The local unit opened at 102.08 US cents at 0700 AEDT, having lost ground during weekend trading as a better than expected US jobs figures prompted a fresh round of US dollar buying.
The US non-farm payrolls data showed the world's largest economy added 236,000 jobs in February, well above market expectations of a 160,000 gain.
During the local trading day, the Australian dollar moved in a tight range between 102.04 US cents and 102.23 cents, with little to push the currency one way or the other.
"It has been pretty benign," Rochford Capital director of market risk Derek Mumford said.
"Certainly there is US dollar strength dominating the market at the moment."
The Australian dollar was at 98.22 Japanese yen at 1700 AEDT, up from 97.69 yen on Friday, and at 78.60 euro cents, up from 78.24 euro cents previously.
Mr Mumford said Australia's relatively high interest rates compared with the likes of Japan had boosted carry-trade activity, as investors sold yen in search of higher returns and bought currencies such as the Australian dollar.
"We could certainly see the Aussie-yen getting up very close to that 100 mark the way things are going," Mr Mumford said.
"The carry trade is very much alive and kicking."
Meanwhile, the bond market closed weaker in response to the US jobs data and the willingness of local traders to let futures prices drift lower while there was a lack of consensus on the direction of interest rates.
The March 10-year bond futures contract ended Monday's local session at 96.445 (implying a yield of 3.555 per cent), down from Friday's local close of 96.480 (3.520 per cent).
The March three-year bond futures contract finished 97.025 (2.975 per cent), down from 97.070 (2.930 per cent) previously.
During the day, the three-year bond futures contract traded below 97.000 for the first time since April 2012.
RBC Capital Markets fixed income strategist Michael Turner said bond markets would find support and rally if there was a broad expectation the central bank was going to cut the cash rate from three per cent currently.
"There are not too many people willing to start offering too much support at these levels just yet until there is a clear rate cut from the Reserve Bank to come," Mr Turner said.
"That's probably not going to be for another couple of months.
"We are just leaking lower in the meantime."