The Australian dollar is higher on United States dollar weakness, as Janet Yellen's testimony and weak US economic data dampen expectation that tapering will occur anytime soon.
At 1700 AEDT, the Australian dollar was trading at 94.02 US cents, up from Friday's close of 93.36 cents.
Pro-economic stimulus comments from Dr Yellen, who will soon head the US Federal Reserve, combined with disappointing US industrial production and New York manufacturing data last week are weighing on the US dollar.
"US dollar weakness permeating since last week is continuing to push the currency market around," OZForex chief currency strategist Jim Vrondas said.
Mr Vrondas said inflation figures due out of the US this week were expected to print on the downside, helping to reinforce a continued easing bias in US monetary policy.
But during the week, investor focus would switch from offshore to domestic events, he said.
The market would now be looking forward to the release of the Reserve Bank of Australia's monthly board meeting minutes on Tuesday and a speech by RBA governor Glenn Stevens on Thursday, which could put a dent in the Australian dollar, Mr Vrondas said.
