After falling half a US cent, the Australian dollar has traded in a tight range as investors await a series of major economic data releases due later in the week.

At 1200 AEDT, the Australian dollar was trading at 107.31 US cents, down from 107.88 cents on Friday afternoon.

CMC Markets foreign exchange dealer Tim Waterer said the currency had traded in a narrow range of between 107.20 and 107.45 US cents, since 0700 AEDT on Monday.

“The Australian dollar is very much in wait and see mode,” he said. “Traders don’t want to get too far ahead of themselves, because we’ve got a lot of data to come this week.”

“I think as the week progresses, we will see a little bit more activity, but I expect a fairly mundane trading session today.”

On Tuesday, the Reserve Bank of Australia (RBA) will decide whether to cut interest rates or to keep them on hold for another month.

The Australian Bureau of Statistics (ABS) will release gross domestic product (GDP) data for the December quarter on Wednesday and unemployment data for February on Thursday.

Meanwhile, Australian 10-year bond futures were higher at noon.

At 0830 AEDT on Monday, the December 10-year bond futures contract was trading at 95.895 (implying a yield of 4.105 per cent) compared to 95.835 (4.165 per cent) on Friday.

The December three-year bond futures contract was at 96.270 (3.230 per cent), up from 96.220 (3.780 per cent).