Crisis in Cyprus drives Aust dollar lower FINANCIAL woes in Cyprus are pushing the Australian dollar lower but not as much as eurozone debt shocks have in the past. At 1200 AEDT on Wednesday, the local unit was trading at 103.67 US cents, down from 103.80 cents on Tuesday. The Cypriot government proposed a levy of at least 6.75 per cent tax on all bank deposits as part of a deal to get a 10 billion euro ($A12.55 billion) aid package, but no MPs voted for it. The government will now seek other ways of making up the shortfall, including trying to secure more Russian investments. The Australian dollar dropped at low as 103.51 US cents after the parliamentary vote, early on Wednesday morning (AEDT), but has since regained some ground. The major currency worst hit was the euro, which dropped to a four-month low against the greenback of 128.44 US cents. Easy Forex currency dealer Tony Darvall said the Australian dollar had not fallen as much as it did on similar euro zone debt crisis shocks last year. The currency has fallen only slightly against the yen and has risen to a three-month high of 80.66 euro cents. "The profile of the Australian currency has changed over the last 12 months," Mr Darvall said. After the yen, Swiss Franc and US dollar, traders look at the Aussie dollar as being pretty safe, the Aussie economy as being pretty safe. We're almost on the side of being a safe-haven currency. Mr Darvall said he expected the Cyprus situation to continue to dominate market moves over the next few days. Traders will also focus on comments by the US Federal Reserve on the American economy after it finishes its policy meeting on Wednesday night, Australian time. Meanwhile, the Australian bond market was firmer at noon. At 1200 AEDT on Wednesday, the June 10-year bond futures contract was trading at 96.500 (implying a yield of 3.500 per cent), up from 96.430 (3.570 per cent) on Tuesday. The June three-year bond futures contract was at 97.060 (2.940 per cent), up from 96.970 (3.030 per cent).