The dollar is slightly higher as traders wait for an announcement on whether the US Federal Reserve will wind down its economic stimulus measures.
At 5PM AEST, the Aussie was trading at US96.21c, up from US95.94c on Friday.
On Thursday morning Australian time, the US central bank's Federal Open Markets Committee will finish up its two-day meeting, with most market participants hoping there will be an announcement on its economic stimulus program, known as quantitative easing.
The release of a string of positive US economic data recently has sparked talk that the Fed would taper the program and that has seen the Aussie lose US7c against a surging US dollar in six weeks.
Forex.com research analyst Chris Tedder said the outcome of the FOMC meeting would be a turning point for the Aussie.
"Rumours suggest the aim of the meeting will be to calm the market," he said.
"However, if the bank lets slip that it's planning on tapering asset purchases sooner rather than later, then money may scramble into the US dollar.
"The Fed is unlikely to be so direct, thus the market will likely be closely monitoring the tone of the bank."
The Reserve Bank of Australia will tomorrow release minutes of its June 4 board meeting, where it kept the cash rate unchanged at a record low of 2.75 per cent.
Focus will be on whether the RBA is likely to cut the cash rate one or two more times this year after making a 25 basis points cut at the May meeting.
"In saying that, we aren't expecting the bank to deviate very far from what RBA governor Glenn Stevens said after the rate decision earlier this month, where he reiterated that growth remains a bit below trend and the effects of previous easing is still finding its way into the real economy," Mr Tedder said.
