Analysts expect trade on equity and currency markets to be less volatile this week, as investors continue to digest the implications of the US Federal Reserve's economic stimulus plans.

Australian shares are set to start the week down, with the ASX SPI 200 futures index down point-seven per cent to four-thousand-655.

The Australian dollar was buying 92 US cents this morning.

Colonial First State chief economist Stephen Halmarick believes trade will more predictable now the US Federal Reserve has given a clearer outlook for its stimulus program.

"That's now been fully priced into the markets," he said.

Fed Chairman Ben Bernanke announced last week that the central bank would wind down its money-printing program if the US economy continues to show signs of improvement.

Mr Halmarick says the spectre of leadership instability in within the Federal Government could weigh on markets this week.

"That could unsettle markets a little, but on the domestic front you would expect the Australian dollar to trade in the low 90s going forward."

 

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