The Australian dollar is slightly lower as investors take profits following a six-day rally.
At 1200 AEST on Monday, the local unit was trading at 105.38 US cents, down from 105.85 cents on Friday.
The local currency surged last week after the US Federal Reserve announced a new round of economic stimulus and a German court said the European Central Bank (ECB) bailout fund was not unconstitutional and Berlin could participate in it.
Easy Forex senior dealer Francisco Solar said that once the Australian dollar rose a six-month high of 106.25 US cents, investors started selling.
"So, there's definitely going to be a level on the top side where people may be looking to take profits, unless there is some further push higher," he said.
On Friday, credit-research firm Egan Jones cut its rating for US government debt to AA minus from AA.
"It will be interesting to see how the market absorbs that news," Mr Solar said.
"I'm not sure if that is the reason behind this pull-back in the Aussie dollar, but I wouldn't be surprised that, at the start of the week, markets are just booking profits, taking a little bit of risk off the table and seeing what transpires."
On Tuesday, the Reserve Bank of Australia will release the minutes of its September board meeting, where it kept the cash rate at 3.5 per cent for the third month in a row.
Mr Solar said traders would look for any hints on when the RBA will next cut the cash rate.
"There is talk of cutting rates to pull back the Aussie dollar. Any talk of that sort could weigh on the Aussie," he said.
Meanwhile, Australian bond futures prices were lower at noon.
At 1200 AEST on Monday, the December 10-year bond futures contract was trading at 96.730 (implying a yield of 3.270 per cent), down from 96.825 (3.175 per cent) on Friday.
The December three-year bond futures contract was at 97.310 (2.690 per cent), down from 97.390 (2.610 per cent).
The September 2012 10- and three-year bond futures contracts expired at 1200 AEST on Monday.
The September 10-year bond futures contract finished at 96.695 (implying a yield of 3.305 per cent), down from 96.805 (3.195 per cent) on Friday.
The September three-year bond futures contract ended at 97.205 (2.795 per cent), down from 97.300 (2.700 per cent).