By David Rogers SYDNEY--The Australian dollar flattened Monday after dropping to a five-week low Friday when the U.S. dollar rose against most currencies after stronger-than-expected U.S. non-farm payrolls data. At 0615 GMT, the local currency was trading at US$0.9381, little changed from late New York levels Friday. Analysts were focussing on the potential for an earlier-than-expected reduction in the Federal Reserve's US$85 billion bond buying program in response to improving U.S. economic data. "The argument for December tapering is certainly gaining momentum," said Stan Shamu, a strategist at IG in Sydney. He added that the U.S. dollar could get further support from any hints of a potential reduction in stimulus from Fed Chairman Ben Bernanke in a speech this Thursday. The Australian Bureau of Statistics said Monday that the number of owner-occupied dwelling commitments rose 4.4% in September, in line with a 4.0% rise expected by economists. The value of owner-occupied housing finance rose 5.3%, and investment housing finance rose 5.2%, supporting other evidence that a string of interest rate cuts this year is starting to boost the housing sector. Still, with Friday's Reserve Bank of Australia Statement on Monetary Policy having downgraded its economic growth forecasts and left the door open for further interest rate cuts, economists are anxious to see whether the post-election improvement in confidence is sustained. National Australia Bank's October business confidence index is due Tuesday and Westpac/Melbourne Institute will release its November consumer sentiment index on Wednesday.

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