THE Australian dollar is more than half a US cent higher, following last week's US equities rally.
At 7am AEDT today, the Australian dollar was trading at US105.91c, up from US105.28c on Friday afternoon.
HiFX trading director Mike Hollows said the Aussie dollar had followed US equities higher at the end of last week, despite quite average data from the world's largest economy.
"Equities closed strongly, with S&P (Standard & Poor) around 14.04, which wasn't extremely high, but it was a solid end to a very good run for equities," he said.
"The data we saw out of the US on Friday was really just on expectation."
US consumer price index (CPI) figures showed a predicted rise of 0.4 per cent for February, while industrial production was below target.
Mr Hollows said the Australian dollar might edge lower, following weaker Chinese housing data.
"We've also had data come out of China over the weekend, which shows home prices posting their worst performance in a year. So, that may start to play out later on today," he said.
"Speculation that the Chinese may move to cut their reserve ratio again, or any suggestion of a slowdown, that will always have an effect on the Australian dollar."
Looking ahead, the local currency could struggle to rise above 106 US cents, Mr Hollows said.
"The Aussie's done very well, rising above the low 104s mid-last week. But, it's coming up to some headwinds as it approaches 106 (US cents)," he said.
Mr Hollows said the Reserve Bank of Australia's minutes from its monthly meeting - due out tomorrow - would be the first domestic focus for the Australian dollar this week.