The Australian dollar is higher against its US counterpart despite the US dollar lifting amid expectations of a more aggressive US Federal Reserve.

At 0635 AEDT on Monday, the Australian dollar was worth 78.42 US cents, up from 78.24 US cents on Friday.

The US dollar extended its rebound off its recent three-year low as investors pared bearish bets against the greenback, anticipating the US central bank could act more aggressively with interest rates.

The US dollar index, which measures the greenback against a basket of six major currencies, rose 0.12 per cent to 89.847 on Friday.

The Fed’s Washington-based Board of Governors semi-annual report to Congress, released on Friday, shows that the central bank sees steady growth continuing and no visible serious risks to cause it to delay or slow its planned interest rate rises.

The Aussie dollar is also up against the yen and the euro.

AAP

Access exclusive analysis, locked news and reports with Inside Retail Weekly. Subscribe today and get our premium print publication delivered to your door every week.