Investing.com - The Australian dollar rose against its U.S. counterpart on Monday, easing off a three-week low but gains were expected to remain limited as sentiment on the greeback strengthened ahead of the Federal Reserve's policy meeting this week.
AUD/USD hit 0.7214 during late Asian trade, the session high; the pair subsequently consolidated at 0.7208, rising 0.26%.
The pair was likely to find support at 0.7098, the low of November 19 and resistance at 0.7283, Friday's high.
Most investors expect the Fed to raise interest rates for the first time since June 2006 at its upcoming meeting on December 15-16.
Higher interest rates would make the U.S. dollar more attractive to yield-seeking investors.
The greenback also remained supported after data on Friday showing that U.S. retail sales rose 0.6% in November, following a 0.2% increase in October.
A separate report showed that the U.S. producer price index rose 0.3% in November, but was down 1.1% on a year-over-year basis.
Separately, investors continued to focus on oil prices after they fell to the lowest levels since early 2009 on Friday amid expectations that a global supply glut will worsen next year.
Falling oil prices have sparked renewed concerns over the health of the global economy and weighed on global inflation.
The Aussie was higher against the euro, with EUR/AUD declining 0.56% to 1.5208.