The Australian dollar has closed firmer, pushing above 103 US cents and moving in line with the rising price of gold.

At 1700 AEST on Monday, the Australian dollar was trading at 103.24 US cents, up from Friday’s local close of 103.10 US cents.

The Australian dollar began the local trading week on a soft note at 102.82 US cents at 0700 AEST, as disappointing US economic growth data and lower commodities prices dampened demand for the local currency.

US gross domestic product rose at an annual pace of 2.5 per cent in the March quarter, below market expectations of 3.1 per cent.

However, a rebound in the gold price during the Australian trading day helped push the local unit back above 103 US cents amid quiet trading conditions, with Chinese and Japanese traders absent due to a public holiday.

“The Australian dollar made a push higher today to again break through the 103 US cent level in a move that mirrored the price rise in gold,” CMC Markets senior trader Tim Waterer said in a research note.

“Thin market conditions may have contributed to the moves higher by gold and the Australian dollar, with the market deprived of liquidity due to bank holidays in both China and Japan.

“The move higher in the gold price today could also be seen as something of a natural bounce after the fall on Friday following the US GDP result.”

A positive day on local equity markets also helped lift sentiment, with Australian stocks closing up about half a per cent.

The spot price of gold in Sydney finished at $US1,470.50 per fine ounce, having rebounded from a low of $US1,461.90 per ounce reached in weekend trading.

Direction during Monday night’s (AEST) offshore session was expected to come from the release of US housing data for March, as well as a survey of manufacturing activity in Texas for April.

However, the major event for markets in the week ahead was expected to be the release of the US non-farm payrolls figures – a key US employment report – on Friday night (AEST).