The Australian dollar rose steadily yesterday as Chinese stocks started the week with a strong performance. However, it was well down on Friday.
The Shanghai Composite index was up 2.1 per cent, buoyed by remarks from the head of China's securities regulator that the country could boost the quota for foreign investor participation in the market.
At 5pm AEDT, the dollar was trading at $US1.0556 -- down US0.36c from Friday's close but above its intraday low of $US1.0519 early in the session.
"Chinese equities were quite strong to start the week, with Shanghai outperforming other markets across the region," said Tim Waterer, a currency strategist at CMC Markets.
The rise for the day came despite home loan approvals falling 0.5 per cent in November.