The US dollar traded mixed in the European session, while the Aussie dollar continued to strengthen after receiving support from a surprise decision by the Reserve Bank of Australia (RBA).
The RBA raised interest rates by 25 basis points to 3.85% at its latest policy meeting, missing market expectations that the central bank would keep it unchanged.
The strengthening was also followed by the kiwi dollar trading to also post gains ahead of the release of New Zealand jobs data on Wednesday.
In contrast to European currencies, where the pound failed to pass the price level of 1.2500 following stronger US dollar trading.
The Euro was little changed after the latest data showed inflation in the European Zone met expectations by rising 7.0% in April from 6.9% previously.
This will serve as an indication for the European Central Bank's (ECB) policy decision on Thursday.
Meanwhile, the yen continued to weaken following a disappointing decision by the Bank of Japan (BOJ) last Friday which has kept its monetary policy stance unchanged.
The ninja currency sank to a 15-year low against the euro, and a 2-month low against the greenback.
Will be the focus of investors in the New York session, is the publication of the United States job opening report (JOLTS) for March which can be used as an indication of the upcoming NFP data.
At the time of writing, the dollar index, which measures the greenback's strength against a group of major currencies, was trading steady at around 102.10.
