Shares are flat as the falling Australian dollar turns off overseas investors.

Two of the big banks, the mining giants and Telstra were weaker, offsetting gains in the energy and insurance sectors.

The Australian dollar fell below 90 US cents on Friday for the first time since early September, after encouraging economic data from the United States and comments from Reserve Bank Governor Glenn Stevens that the dollar was still too high.

Baillieu Holst director Richard Morrow said the weaker currency and worries about the federal government’s mid-year economic and fiscal outlook (MYEFO), due out next week, were impacting trade.

“Everyone’s anticipating the Aussie dollar will fall next week when MYEFO is being announced,” he said.

“Foreign investors are pretty wary of Australia in those circumstances.

“There’s definitely short selling from overseas in Westpac and ANZ.”

Westpac had lost four cents to $30.78, ANZ was down 11 cents to $30.24, while NAB had put on 15 cents to $33.19 and Commonwealth Bank was 52 cents higher at $74.03.

BHP Billiton had dropped four cents to $35.51, Rio Tinto was down 37 cents to $64.77 and Fortescue Metals was 3.5 cents weaker at $5.325.

US stocks were boosted overnight after surprisingly good retail sales figures boosted expectations the US Federal Reserve could soon scale back its stimulus program.

KEY FACTS

* At 1200 AEDT on Friday, the benchmark S&P/ASX200 index was up three points, or 0.06 per cent, at 5,065.5 points.

* The broader All Ordinaries index was up 1.3 points, or 0.03 per cent, at 5,070.5 points.

* The December share price index futures contract was up 11 points at 5,068 points, with 24,827 contracts traded.

* National turnover was $538.6 million securities worth $1.9 billion.