The actions of China's central bank (PBOC) which lowered its main lending rate (LPR) are seen to have failed to stimulate market movements.
Missing expectations, the PBOC only cut its one-year LPR by 10 basis points to 3.45% and kept its five-year LPR unchanged at 4.20%.
Most household and corporate loans in China are based on the PBOC's one-year prime lending rate while mortgages are fixed at the five-year rate.
Following the less dovish move, the Aussie and New Zealand dollars continued to sink to nine-month lows against the US dollar in the European session.
The yuan fell to a record low of 7,300 against the USD despite a firmer setting of its trading range by the central bank.
This gives room for the US dollar to maintain its strengthening around the highest level even though the price movement is clearly seen as horizontal.
The dollar index, which measures the greenback's performance against six major currencies, traded little changed at around 103.36.
The euro continued to move sideways, while the pound slipped slightly from last week's gains by trading at around 1.2715 against the greenback.
With no major economic data published today, the currency is expected to continue to move around the same price zone but investors are also taking a cautious approach.
