The Australian dollar started the week on a low note as it weakened against its US counterparts, snapping its seven-week winning streak, but the currency held off to its major gains to remain stronger against other rivals.
The Aussie registered 0.17% depreciation against the US dollar, which has been struggling in the previous week, to settle at 0.8095. Last week, the Australian dollar closed at its highest level in two years at 81 cents per greenback.
The US dollar finally erased some of its losses it had sustained in the previous session as the US dollar index tacked on 0.4% gain to shove near the 90-level at 89.406. Investors are expecting that the struggling currency would further recover this week as the Federal Reserve will release its statement on its monetary policy for January.
Despite the slight recovery of the greenback, the Australian dollar remained higher against its major counterparts as it advanced 0.05% against the Japanese yen and rose 0.12% and 0.15% against the British pound and New Zealand dollar respectively.
Analysts from the Haddad of the Commonwealth Bank believed that the weakness on Aussie would be short-lived as the economy in the country continues to encourage investors, with its inflation expected to accelerate by 0.5%.
The Reserve bank of Australia is set to deliver another batch of economic figures this Wednesday and investors are waiting for the release of the final reading of the business confidence last month.