The Australian dollar is trading in a tight range after gaining almost one per cent last week.

At 0700 AEST on Monday, the local unit was trading at 93.62 US cents, up from 93.56 cents on Friday.

The currency peaked at 93.96 US cents late on Thursday night, its highest level since early November.

RBC senior currency strategist Greg Moore said the Australian dollar had fallen from those levels as some traders sold the currency to lock in profits.

“The Australian dollar ended last week pulling back modestly from its sharp climb,” he said.

“The Australian 2014/15 budget on Tuesday is the domestic highlight this week where Treasurer Joe Hockey’s first budget will confirm a moderate tightening of fiscal policy over the medium term.

“We estimate a nearly 0.5 per cent annual drag on growth, and a return to surplus within the decade.”

The highlight of local economic data out on Monday is the National Australia Bank monthly business survey.

AAP