By JAMES GLYNN SYDNEY—The Australian dollar rose steadily Monday in Asia as Chinese stocks started the week with a strong performance. Australia is heavily reliant on Chinese demand for industrial commodities to fuel growth in the resource-rich economy. The Shanghai Composite was up 2.1% Monday, buoyed by remarks from the head of China's securities regulator that China could boost the quota for foreign investor participation in the market. At 0550 GMT, the Australian dollar was trading at US$1.0559, compared with an intraday low of US$1.0519 struck early in the session. It started trading in Asia at US$1.0532. "Chinese equities were quite strong to start the week, with Shanghai outperforming other markets across the region," said Tim Waterer, a currency strategist at CMC Markets. The Australian dollar gained ground despite continuing signs of a likely slow start to the year for the local economy. Official data Monday showed the number of approvals for home loans fell 0.5% in November, missing market forecasts for a 0.5% rise over the month. The Reserve Bank of Australia last month cut its benchmark lending rate to 3%, matching a low reached in the global financial crisis. The central bank is attempting to boost growth in non-mining sectors of the economy amid slowing demand for resources from China, the country's biggest trading partner. Economists said the housing sector needs to strengthen in 2013 to help offset an expected softening in business investment. "This month's soft growth continues to reflect a subdued recovery in housing finance," said David Cannington, an economist at the ANZ Bank ANZ.AU -0.16% . Elsewhere, the number of jobs advertised in Australian newspapers and online fell 3.8% in December from November to the lowest level in three years, according to a survey by the ANZ Bank. Official employment data for December are due on Thursday. Economists surveyed by Dow Jones Newswires expect the jobless rate to have risen to 5.4% from 5.2% the previous month. Currency strategists are also looking to a speech by U.S. Federal Reserve Chairman Ben Bernanke later Monday for direction. It is his first public appearance since the minutes of the Federal Open Market Committee meeting were released earlier this month. Mr. Bernanke is expected to set to the tone for policy, but not make any major announcements about the future of the central bank's bond buying program, analysts said.

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