The Australian dollar has fallen after disappointing US trade figures weakened global market sentiment on Friday.
At 0700 AEDT on Monday, the Australian dollar was trading at 105.43 US cents, down from 105.82 US cents on Friday.
Bank of New Zealand currency strategist Mike Jones said a sell-of in the Australian dollar against a stronger euro weakened the Aussie against its US counterpart on Friday night.
He said disappointing US trade figures, which showed the country's trade deficit expanded to $US48.7 billion in November, had also impacted on the Australian dollar.
"There was some quite aggressive Aussie/euro selling and there was also some US trade data that underwhelmed, and that took a toll on the Aussie as well," he said.
Mr Jones said the key events for the Australian dollar this week would be the release, on Thursday, of domestic employment figures for December and a speech by US Federal Reserve chairman Dr Ben Bernanke on Monday night (Australian time).
He said markets would closely watch Bernanke's speech following recent speculation the US Federal Reserve could end its stimulus program some time this year.
"I think we're going to see Bernanke lean against expectation and that is probably going to weigh against the US dollar," he said.
"So, I think we're probably going to se the Aussie dollar back testing those highs (set last week) of around 106 US cents."