The Australian dollar has rebounded to finish back above US98 cents after its recent big falls to the lowest levels in six months.

At 1700 AEST on Monday, the Australian dollar was trading at 98.36 US cents, up from 98.25 cents on Friday.

From 0700, the local currency traded between 98.03 US cents and 98.76 cents.

On Friday the local currency went as low as 97.95 US cents, its lowest since November 29 against the US dollar.

Nomura head of foreign exchange Kurt Magnus on Monday said the Australian dollar had risen on news that Spanish bond yields had improved but would need more concrete news from the euro zone before any gains were consolidated.

“Everything’s going to be volatile while the market waits for more information on Greece,” he said.

“The positive news from G8 meeting over the weekend has been pretty much discounted.”

G8 leaders met at Camp David in the United States over the weekend and vowed to focus on growth as well as euro zone debt.

The Australian dollar last week had fallen below parity on concerns about the euro zone – primarily Greece’s inability form government and news of large withdrawals from Spanish bank Bankia.

Mr Magnus said the Australian dollar would trade in voltile ranges until consistent positive news on the Greek political front, with an election there planned for June 17.

“The over-riding factor is, even if they have another election, can they form a coalition?” he said.

“They’ve all said they want to remain in the European Union, but they don’t want austerity – and you can’t have your cake and eat it too.”

Mr Magnus said Australian traders would be looking at the performance of equities as an indication of global sentiment.