The Australian dollar passed 92 US cents for the first time in three weeks after the release of lacklustre US jobs figures on Friday night, Australian time.
At 1700 AEST on Monday, the local unit was trading at 91.98 US cents, up from 91.47 cents on Friday.
In offshore trade on Friday (Saturday morning AEST), the Australian dollar peaked at 92.17 US cents, its highest level since August 19.
The American economy added 169,000 jobs in August, the US Labor Department said, just below expectations of a 175,000 gain.
The figures would have dampened expectations that the US Federal Reserve would taper its economic stimulus program at its policy meeting next week.
ForexCT head of research Steven Dooley said the data disappointed the market because they were expecting even stronger jobs growth after a report from payrolls firm ADP showed strong growth in the US private sector.
"The market got overpositioned after the very strong ADP numbers and strong data we've had from the US over the past couple of weeks," Mr Dooley said.
"We were expecting a much better than expected number and when it came in below expectations it was an absolute monster move throughout the market.
"The US dollar fell 100 basis points against the yen and gold was up $US25.00."
Mr Dooley said the only thing stopping the Australian dollar pushing higher is that most traders want to sell the currency when it rises towards 92.35 US cents.
"We're waiting to see it we can punch above that, and if we do then we're likely to push higher to 93.15 US cents or so," he said
"What we're looking at, at the moment is the improvement in the Aussie dollar is being helped by a significant improvement in economic data from China and Europe."
The next major economic data will be the release of Chinese industrial production figures and retail trade for August, due out on Tuesday.