The Australian dollar has hit a one-month high after Greek elections gave the market some hope the debt-stricken nation will stay in the euro zone.

At 1200 AEST on Monday, the Australian dollar was trading at 101.02 US cents, up from 100.16 cents on Friday.

Since 0700 AEST on Monday, the local unit has traded between 100.91 US cents and 101.35 cents, its highest level since May 10.

Greece’s New Democracy party has come first in national elections and its leader has proposed forming a coalition government in favour of staying in the euro zone and maintaining austerity programs.

CMC Markets senior foreign exchange dealer Tim Waterer said equity markets, the Australian dollar and the euro had rallied in response to the Greek result.

“Traders took quite a deal of comfort in the Greek elections with the new democracy party getting up,” Mr Waterer said.

“It’s providing a degree of stability in relation to Greece’s membership in the euro zone.

“As a result of that, we’ve seen quite exuberant buying of risk assets.”

Mr Waterer said the main economic event this week will be the meeting of the Federal Open Markets Committee (FOMC) of the US Federal Reserve on Wednesday night, Australian time.

The FOMC is expected to discuss embarking on a third round of economic stimulus called quantitative easing.

“I think that will have quite a large bearing on where the Australian dollar will be heading towards the end of the week,” Mr Waterer said.

“If there is more easing signalled, then that would weaken the greenback and more upside, and we could be looking at 102.00 US cents by the end of the week.”

Meanwhile, the Australian bond futures prices have fallen.

At 1200 AEST on Monday, the September 10-year bond futures contract was trading at 96.960 (implying a yield of 3.040 per cent), down from 97.015 (2.985 per cent) on Tuesday.

The September three-year bond futures contract was at 97.640 (2.360 per cent), down from 97.715 (2.285 per cent).