$A higher awaiting European summit
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The Australian dollar is more than half a US cent higher ahead of a key European meeting to decide on a bailout package for Greece.
At 1700 AEDT on Monday, the Australian dollar was trading at 104.53 US cents, up from 103.98 US cents on Friday.
Commonwealth Bank currency strategist Joseph Capurso said the local currency had followed global markets higher over the weekend in anticipation of the meeting in Brussels.
"We had a good Friday, but so far today it's been fairly stable," he said.
European finance ministers are meeting later on Monday (European time) to sign off on a 30 billion euros ($A37.50 billion) bailout package for Greece.
Mr Capurso said a positive outcome could boost the Aussie dollar.
"If they do come out with some good news for Greece, it could boost the Aussie slightly," he said.
Later in the week, markets would be watching domestic capital expenditure data, which could act as a guide to whether the Reserve Bank of Australia (RBA) might cut interest rates again.
"The question of when the mining boom will end is a big part of the RBA's thinking," Mr Capurso said.
"If it's a bad report, it means they will have more work to do in lowering interest rates."
At 1700 AEDT on Monday, the Australian dollar was at 85.96 Japanese yen, up from 85.53 yen on Friday and at 80.68 euro cents, unchanged from Friday's close.
Meanwhile, Australian bond futures prices were higher.
At 1630 AEDT on Monday, the December 10-year bond futures contract was at 96.815 (implying a yield of 3.185 per cent), up from 96.780 (2.220 per cent), on Friday.
The December three-year bond futures contract was trading at 97.290 (2.710 per cent), up from 97.260 (2.740 per cent).
Deutsche Bank bond trader Andrew Bryan said bond markets were slightly higher but trading in a subdued manner ahead of the European summit.
"Equities are weaker, US Treasuries are slightly stronger, and we're following that," he said.
"There seems to be a holding back of trading activity until the market gets news of Greece receiving its next aid package."
He added that investors were also concerned about the Spanish elections and the US fiscal cliff.