The Australian dollar rose on Monday after China boosted banks' lending power to support an economy that is Australia's largest export market, while the euro was weighed down by concerns over Greece's struggle to agree terms with creditors.

The People's Bank of China (PBOC) on Sunday cut the amount of cash that banks must hold as reserves (RRR) in the latest attempt to help spur bank lending and combat slowing growth.

China is the biggest export market for both Australia and New Zealand and the fresh stimulus to boost growth there helped give a boost to both Antipodean currencies.

The Australian dollar touched a near one-month high of $0.7844 . It last traded at $0.7806, up 0.3 per cent on the day.

Some analysts were cautious on the medium-term outlook for the Australian dollar, which had fallen to a near six-year low of $0.7534 in early April, hurt by falls in the prices of iron ore -- Australia's single biggest export earner.

In the near term, the Australian dollar could test its March high of $0.7939 if the recent weakness of the U.S. dollar continues, said Heng Koon How, senior FX strategist for private banking and wealth management at Credit Suisse in Singapore.

"But this should not be mistaken as a sign of Australian dollar strength," Heng said.

A weakening in terms of trade and a lower inflation profile in Australia are likely to weigh on the Australian dollar, he said, adding: "Our 12-month forecast remains unchanged at $0.70."

The New Zealand dollar initially strengthened thanks to China easing monetary policy, but dipped to a trough of $0.7679 after local data showed inflation slowed to a 15-year low.

The kiwi later regained its footing and was last up 0.6 percent on the day at $0.7709, nearing a three-month high of $0.7740 set on Friday.

The euro slipped 0.3 per cent to $1.0770, weighed down by investors worries over Greece, as Athens continues to seek a deal with its creditors on reforms to unlock aid.

Not helping sentiment, France's central bank chief said Greek banks may soon run out of collateral to access European Central Bank refinancing unless Athens reaches an agreement with the European Union and International Monetary Fund on economic reforms.

Against the yen, the euro fell 0.5 per cent to 127.83 yen. The yen also edged higher against the greenback, with the dollar shedding 0.2 per cent to 118.70 yen.

Investors will look to a deluge of US earnings this week for a clearer picture of the US economy, amid worries a strong dollar has hurt profits at some major companies.

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