The Australian dollar is almost unchanged on a quiet trading day as investors look ahead to Tuesday night’s federal budget.

The Australian dollar was worth 79.09 US cents at 1200 AEST on Tuesday, down from 79.10 US cents on Monday.

RBC Capital Markets fixed income and currency strategist Michael Turner said the Aussie had traded in a “modest range” on Tuesday leading into the federal budget, which is due to be delivered in Canberra on Tuesday evening.

“It’s just treading water around 79 (US cents),” Mr Turner told AAP.

He said it was unlikely the budget would have much of a short term impact on the currency, unless it had consequences for Australia’s credit rating with the major ratings agencies.

He said Chinese industrial production data for April is due out Wednesday Australian time would be the market’s next focus.

“That’d probably be about it, actually,” Mr Turner said.

Meanwhile, the Australian bond market was weaker at noon.

The June 2015 10-year bond futures contract was trading at 97.030 (implying a yield of 2.970 per cent), down from 97.145 (2.855 per cent) on Monday.

The June 2015 three-year bond futures contract was at 97.830 (2.170 per cent), down from 97.900 (2.100 per cent).

KEY MOVEMENTS

One Australian dollar buys:

* 79.09 US cents, from 79.10 cents on Monday

* 95.04 Japanese yen, from 94.84 yen

* 70.96 euro cents, from 70.71 euro cents

* 107.66 New Zealand cents, from 106.85 NZ cents

* 50.79 British pence, from 51.26 pence

Government bond and bank bill yields:

* CGS 4.75 pct July 2017, 2.096%, from 2.052% on Monday

* CGS 2.75 pct April 2024, 2.889%, from 2.777%

(*Currency closes taken at 1700 AEST previous local session, bond market closes taken at 1630 AEST previous local session)

Source: IRESS