The Australian dollar finished the week on a firmer note, boosted by upbeat earnings from US companies which supported risk appetite, although fresh geopolitical concerns checked sharp gains.
Bomb blasts ripped through two hotels in the Indonesian capital's business district on Friday, killing at least 9 people and injuring 42 and prompting some investors to pare risky trades.
Also reports that "Toshin" retail funds, launched to invest Japanese money in overseas assets, have not been able to draw a strong response weighed on the high-yielding Aussie.
At the local close, the dollar was trading at $US0.7997, up from Thursday's close of $US0.7966.
During the day, the unit moved between $US0.7986 and $US0.8064, the latter reached at the start of the local session.
It finished last week on the defensive around $US0.7785 when caution was high ahead of the US reporting season. But, so far, the results have tended to beat expectations.
"The US earnings season has caught a lot of people off guard with its upbeat tone," said Jonathan Cavenagh, currency strategist at Westpac. "That helped the Aussie approach its June highs, though Asian investors are selling into its strength."
Investors are now awaiting results from Citigroup and Bank of America later in the day. US stock futures pointed to a softer start, a factor likely to be a drag on the Aussie.
Reflecting that caution, the local dollar dropped from session highs of 75.53 yen to around 75.05 yen and broadly unchanged from late here on Thursday.
It had fallen to as low as 74.49 yen on reports that "Toshin" launches were a damp squib. According to data complied by Reuters, eight new Japanese mutual funds attracted about $US255 million.
Also weighing on the Aussie at the margins was a record fall in Australian export prices for the second quarter. The 20.6 per cent slump in export prices raised concerns that trade could be a bigger drag for the economy than expected.
And while export prices were down, so were the cost of imports, a factor that could bode well for inflation.
The consumer price index for the second quarter is out on July 22 and annual inflation is expected to slow to 1.5 per cent, from 2.5 per cent the quarter before and under the central bank's 2 to 3 per cent target band.
Australian bond futures reversed earlier losses, helped by safe-haven inflows. Three-year bond futures rose 0.07 points to 95.48, while ten-year bond futures added 0.035 points to 94.605.