At 07:00 (AEST), the Australian dollar was buying 77.12 U.S. cents, up from 77.07 U.S. cents on Friday.
"AUD/USD is holding above 77 U.S. cents and poised to extend its advance beyond 78 U.S. cents," FXStreet Chief Analyst Valeria Bednarik said.
"The Australian dollar was among the best 2020 performers, ending the year against the greenback above the 77.00 U.S. cents threshold and at levels last seen in April 2018."
At 09:30 (AEST), the local unit was buying 76.96 U.S. cents.
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