The Australian dollar is up almost one US cent as currency traders await the outcome of the European leaders' debt summit on Sunday.
At 1700 AEDT on Friday the Australian dollar was trading at 102.43 US cents up from 101.55 cents yesterday.
ANZ senior markets dealer Alex Sinton said the passing of an austerity bill in Greece overnight was not enough to spur traders into action.
"Passing (bills) through parliament is a pretty different story than actually passing it through the populace," Mr Sinton said.
The Australian dollar opened the local trading session at 102.42 US cents and remained around that level for the remainder of the day.
CMC chief market strategist Michael McCarthy said the local unit traded in a very tight range on Friday.
"There is a hosing down of market expectations (about solutions to the debt summit), particularly coming out of the German finance ministry," Mr McCarthy said.
"That seems to be a sensible thing to do. From a business point of view," he said.
"It's always better to underpromise and overdeliver."
At 5pm the Australian dollar was trading at 74.26 euro cents, up from 74.15 euro cents on Wednesday, and was at 78.61 yen up from 77.91 previously.
Meanwhile, Australian bond prices fell as the market entered a phase of calm before next week's official inflation data, and a key meeting this weekend in Europe to discuss the eurozone debt crisis.
At 4.30pm, the December 10-year bond futures contract was trading at 95.480 (implying a yield of 4.520 per cent), down from 95.535 (4.465 per cent) on Thursday.
The December three-year bond futures contract was at 96.140 (4.860 per cent), down from 96.200 (4.800 per cent).
Sunday will mark the close of a European Union leaders' summit to address the eurozone debt crisis.
On Wednesday official September quarter inflation data will published, which is expected to determine whether Reserve Bank of Australia will cut interest rates next month.
National Australia Bank head of research Peter Jolly said bond prices were down slightly today due to two positive developments.
An austerity bill passed by the Greek parliament overnight provided some hope that efforts were being made to contain the debt crisis, he said.
"Everything that points towards some sort of reasonable resolution to Europe's crisis will push bond yields higher (prices lower)," Mr Jolly said.
Local data on Friday showed Australian export prices were up four per cent in the September quarter and import prices were flat, indicating an improved terms of trade.
"It's supportive of a stronger economy," Mr Jolly said.
The RBA's trade weighted index was at 75.2, up from 74.9 on Thursday.
