The US dollar stayed close to a three-week trough against other primary currencies fueled by reservations the US central bank will still increase cash rates by the end of this year.
On the contrary, the Aussie dollar went up 0.1 percent to $0.7341 and remained firm after going up four percent last week for the largest weekly gain since the latter part of 2011. It touched a new seven-week peak at $0.7347.
However, the surge of AUD and other emerging currencies in Asia can just be momentary, according to a senior international markets analyst from Sumitomo Mitsui Banking based in Singapore.
Some economic observers share the view that this will be temporary and it is not advisable to bet aggressively on the Australian currency.
The FOREX market may follow trade statistics from China along with economic indicators from the US like retail sales numbers as well as CPI this week.
The index for USD traded at 94.780 before reaching a slump of 94.692 which is the weakest since September 18.
The euro also climbed 0.1 percent up to $1.1372 and set a three-week peak of $1.13875. The US dollar was steady against the Japanese currency at 120.21 JPY.
Meanwhile, the US dollar retreated last week versus commodity currencies.
At the moment, the focus will be on whether there will be an increase in commodity as well as up-and-coming market currencies or a transitory rally propelled primarily by position squaring or simply a continuing uptrend.