The Australian dollar on Monday edged higher from last week's closing, buoyed by stronger bulk commodity prices especially iron ore.

The Aussie was trading at 74.37 U.S. cents in open Asia trade, up from the previous close at 74.09 U.S. cents.

"AUD/USD is stuck between a resurgent USD and higher commodity prices (particularly for iron ore). Ultimately, we expect the prices of Australia's key commodities to fall because demand conditions should ease in China early next year. Lower commodity prices will drag AUD lower," Commonwealth Bank of Australia currency strategist and international economist Joseph Capurso said in a note.

At 0935 local time, the Australian dollar moved higher to 74.44 U.S. cents.