The Australian dollar has fallen after hitting its highest level in almost a month.

At 1200 AEDT on Monday, the local unit was trading at 89.56 US cents, down from 89.71 cents on Friday.

Early on Saturday morning, the currency peaked at 90.07 US cents, its highest level since December 12.

The Australian dollar fell two per cent in December after the US Federal Reserve said it would taper its bond purchases by $US10 million a month, starting in January.

However, after Christmas, it gained ground as buyers took advantage of its relatively cheaper value.

LTG GoldRock director Andrew Barnett said the Australian dollar would continue to bounce in a fairly tight range, with not much economic news or events to motivate traders.

“There’s a few opportunistic buyers around at the moment, but anything above 90 US cents is a good opportunity (to sell),” he said.

Mr Barnett said the Fed’s decision was no longer having an affect on the currency.

“I think a lot of the aspects of the US economy and the tapering has now been priced into the market,” he said.

“The market is waiting for the next flavour of the day to kick things off and drive price for the Aussie dollar, the kiwi and the US dollar.

“At the moment, there’s some buyers for the Aussie. It was pretty heavily sold off ahead of Christmas.”

Mr Barnett said the main focus for markets this week would be the release of US non-farm payrolls for December, the key employment indicator for the American economy.

Meanwhile, the Australian bond market was weaker.

At 1200 AEDT on Monday, the March 2014 10-year bond futures contract was trading at 95.650 (implying a yield of 4.350 per cent), down from 95.695 (4.305 per cent) on Friday.

The March 2014 three-year bond futures contract was at 96.900 (3.100 per cent), down from 96.940 (3.060 per cent).