At 5pm AEDT, the Aussie was trading at $US1.0452, up from $US1.0449 on Friday.
Since 7am AEDT, the local currency traded between $US1.0406 and $US1.0454.
CMC Markets foreign exchange dealer Tim Waterer said the dollar had fallen over the long weekend, following positive news about European debt that put the euro in the spotlight.
"The Australian dollar started the session quite precariously and it looked like a dip below 104 (US cents) could be on the cards," he said.
"It appeared to be taking a back seat in the currency market compared to the euro, which is seeing a lot of currency flows based on the improving sentiment there."
This followed an announcement on Friday that the European Central Bank could receive up to 137.2 billion euros ($178.58bn) in repayment of long-term refinancing operation loans received by the region's banks.
The ECB said 278 banks were set to take part in the repayment.
Mr Waterer said an optimistic survey of Australian businesses had rescued the dollar somewhat today.
"The NAB survey made some impact on sentiment, and provided some support for the Aussie dollar," he said.
"It turned what looked like a weak session for the currency into something with a bit more substance."
NAB's monthly business survey showed business confidence rising 12 points in December to an index level of +3.
Economists suggested this could be a turning point for the Australian economy, making it less likely the Reserve Bank of Australia will cut the cash rate at its meeting next Tuesday.
Mr Waterer said Australian markets would remain focused on events overseas this week, with significant data expected for Chinese manufacturing and US jobs.
