The Australian dollar is slightly lower after weak Chinese economic data and hopes about a resolution in Washington pulled the currency in different directions.
At 1700 AEDT on Monday, the local unit was trading at 94.67 US cents, down from 94.76 cents on Friday.
During the day, the currency traded between 94.29 US cents and 94.75 cents.
The Australian dollar fell almost half a US cent in early trade, as data out on Saturday showed China's trade surplus had almost halved to a disappointing $15.2 billion in September.
The Australian currency then gained ground as investors became hopeful of a resolution to the US budget and debt ceiling standoff, FXCM market analyst David de Ferranti said.
A bill raising the US government's borrowing limit needs to be passed by October 17, or the government risks a default.
"While there has been little real progress towards a deal between Washington lawmakers, the fact they were talking was taken as a positive sign by the market and sparked a rally in risk assets," Mr de Ferranti said.
"We went into the weekend hopeful there would be further steps towards a plan to extend the deadline.
"A resolution to the standoff would also mean a lesser impact on the US economy and more scope for the US Federal Reserve to taper its asset purchases."On Tuesday, the Reserve Bank of Australia will release the minutes of its October meeting, where it kept the cash rate at a record low of 2.5 per cent and gave no indication of the timing of future cuts.