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The Australian dollar was largely sidelined on Monday as the prospect of higher euro zone interest rates and an increasingly likely change in Japan's ultra-loose monetary policy kept activity focused on the major currencies.
A short squeeze in early trade towards last week's one-month high at $0.7487 was followed by a lapse into the middle of the day's $0.7437-$0.7484 range for much of the session.
One Aussie dollar bought $0.7443/47, but fell to 0.6169 euro after opening at 0.6211 euro. The Aussie had traded a $0.7423-$0.7462 range offshore on Friday.
"At this time, the greater attention is on the rise of the euro and the retreat of the US dollar that is seen in the far bigger currency plays across the Atlantic," said Peter Pontikis, analyst at Suncorp.

Copyright Reuters, 2006

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