The Australian dollar was buying 62.22 US cents late Monday afternoon, from 62.16 US cents at Friday's close of business.
Over the New Year's holiday it breached 62 US cents for the first time since October 2022.
The local share market meanwhile finished marginally higher on Monday, its third straight day of gains.
The benchmark S&P/ASX200 index rose 6.9 points, or 0.08 per cent, to 8,257.4, while the broader All Ordinaries gained 4.6 points, or 0.05 per cent, to 8,516.5.
Brown Brothers Harriman head of currency trading Win Thin said the Aussie could see further downside as markets ramped up bets for a February rate cut.
The interest rate market's implied odds of a February 18 cut has been just over 70 per cent in recent days, up from over 50 per cent last month.
A consumer price index readout for November due to be released by the Australian Bureau of Statistics on Wednesday would be important in setting the direction of the Aussie, Dr Thin said.
Minutes from the Federal Reserve's last meeting to be released on Wednesday will also be closely studied and is likely to drive the greenback higher or lower, potentially putting pressure on the Aussie.
The Fed cut US interest rates at its December 19 meeting but pivoted to a more hawkish stance, indicating there would be fewer rate cuts in 2025 than previously forecast, leading to a big drop in the Aussie dollar and the ASX200.
