The Australian dollar strengthened sharply in US trading on Friday with a peak close to 0.8120 as the US currency was subjected to wider selling pressure and markets looked to take an optimistic stance towards risk appetite. The domestic data recorded a rise in auto sales, but international conditions were still dominant on Monday. The US dollar was able to recover while commodity prices declined and this put the Australian dollar under renewed selling pressure with a test of support below the 0.80 level. Choppy trading conditions are liable to persist in the short term with the currency still looking to offer little value above the 0.8050 level against the US dollar with the risk of a renewed decline to the 0.7850 region.