The Australian dollar is only a touch higher as the rising cost of borrowing for the Spanish government dampens optimism about the Greek election result.
At 0700 AEST on Tuesday, the local unit was trading at 101.25 US cents, up from 101.14 cents on Monday.
Since 1700 AEST on Monday, the Australian dollar has traded between 100.57 US cents and 101.42 cents.
The currency rallied on Monday morning after the pro-euro zone New Democracy party came first in the Greek election on Sunday.
However, hopes of any easing to the euro zone government debt crisis faded when Spanish bond yields rose to a new record, pushing up the cost of borrowing for the already debt-laden Spanish government.
Westpac New Zealand senior market strategist Imre Speizer said the Greek election result was only ever going to give market optimism a small and brief boost.
"Much remains unresolved in Greece," he said from Auckland.
"The make-up of the government remains unknown. That'll take three days and its adherence to fiscal targets remains as questionable as it did before.
"It allows the focus to turn towards the issue of Spain's government bonds. Their bonds were sold very heavily last night.
"They (Spanish bond yields) went over seven per cent, which is certainly unsustainable for them," Mr Speizer said.
On Tuesday morning, the Reserve Bank of Australia (RBA) releases the minutes to its June 5 board meeting, at which the cash rate was cut for a second month in a row.
Mr Speizer said the market would also focus on Wednesday night's meeting of the policy making committee of the US Federal Reserve, which is expected to discuss putting more stimulus into the American economy.