The Australian dollar ended Monday near session highs, taking a back seat as investors concentrate on crucial developments in yen and euro markets.
The euro fell overnight on talk of a rate cut in Europe while the yen rose to five-week highs after Britain's Times newspaper said the Bank of Japan planned to curtail its hefty greenback buying.
Strategists said the Aussie was likely to remain a favourite on any weakness in the US dollar, which has been weighed both by large internal and external budget deficits and concern the United States could suffer more terror attacks after bombings in Madrid.
The Aussie was trading at $0.7447/52, compared with $0.7399/7404 late on Friday.
The Aussie touched a high of around 74.75 US cents offshore after a solid bounce from 73.80 cents, helped by rising gold and commodity prices.
The Aussie had strengthened against the major currencies on Friday with a US $5.20 per ounce increase in the price of gold offering key support.
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