The Australian dollar and other risk-sensitive currencies recovered after White house trade adviser Peter Navarro said his comments that the trade deal with China was "over" were taken out of context.

US President Donald Trump also said that the first phase of the trade deal signed with China in January remains fully in force. This eased market fears that Washington might abandon the agreement.

The World health organization reported on Sunday a record increase in the number of cases of coronavirus infection in the world. In 24 hours, 183,020 new cases were recorded.

Volatility in currency markets is increasing amid hopes of lifting quarantine measures in many parts of the world, on the one hand, and signs of an increase in the number of coronavirus cases in the US, on the other.

The market focuses on data on business activity in Europe, where some countries began easing restrictions at the end of April. Market participants will be waiting for signals about the pace of economic recovery. Economists expect the Euro zone composite PMI to rise to 42.4 in June from 31.9 in may, amid a gradual recovery in European economies.