The Australian dollar has fallen from its two-year high against the greenback last week, but is slightly up on Friday trading, amid a slump in oil prices.
At 0635 AEST on Monday, the Australian dollar was worth 79.11 US cents, up from 79.07 US cents on Friday.
The Australian dollar is also down slightly against the yen and the euro.
Westpac’s Imre Speizer said the US dollar index had fallen around 0.5 per cent to a 13-month low, while the local currency had basically held its ground amid a drop in commodities prices.
“Underperformer AUD ranged sideways between 0.7905 and 0.7935, perhaps held back by the fall in oil and iron ore (-1.3 per cent),” Mr Speizer said in a morning note.
“After a frenetic rally last week, some consolidation between 0.7800 and 0.8000 is warranted.”
He expected the Aussie dollar to stabilise.
Australian markets are bracing for June quarter CPI data on Wednesday morning, which will be followed by a speech from RBA governor Phillip Lowe.
The AUD skyrocketed against the greenback mid-way through last week after the RBA signalled the implementation of a higher neutral cash rate of 3.5 per cent.
