The Australian dollar is weaker but off its morning lows after the Reserve Bank of Australia’s minutes mentioned the Bank of Japan.

At 1200 AEDT on Tuesday, the local currency was trading at 87.24 US cents, down from 87.86 cents on Monday.

But the unit added more than a tenth of a US cent after the central bank’s November meeting minutes mentioned what effect stimulus measures by the Bank of Japan could have on the local currency.

“Such flows could hold the Australian dollar at a higher level than economic fundamentals would imply,” the Reserve Bank said.

Easy Forex currency dealer Ricky Liu said the RBA’s commentary about Japan was the only newsworthy comment.

“The only new thing is regarding the Japanese economy,” he said, adding that bond buying by the Japan’s central bank would weaken the yen.

However, the Australian dollar had weakened during offshore trade as Japan’s recession status boosted the greenback against a range of currencies.

Meanwhile, Australian bond futures prices were weaker.

At 1200 AEDT on Tuesday, the December 2014 10-year bond futures contract was trading at 96.685 (implying a yield of 3.315 per cent), down from 96.720 (3.280 per cent) on Monday.

The December 2014 three-year bond futures contract was at 97.410 (2.590), down from 97.420 (2.580 per cent).