“¢ The USD struggles to gain any positive traction on softer US retail sales data.
“¢ Positive copper prices remain supportive for the commodity-linked Aussie.
“¢ Traders now eye RBA minutes/Chinese inflation figures for fresh impetus.
The AUD/USD pair spiked to 1-1/2 week tops, around mid-0.7100s post-US retail sales data, albeit quickly retreated few pips thereafter.
Having found decent support near the 0.7100 handle, the pair continued scaling higher through the early North-American session and was being supported by some renewed US Dollar selling bias.
The USD lost some additional ground following the disappointing release of US monthly retail sales data, with bulls shrugging off a goodish pickup in the US Treasury bond yields.
Meanwhile, the prevalent positive tone around commodity space, especially copper, further underpinned the commodity-linked Australian Dollar and remained supportive of the momentum.
Further gains, however, remained capped amid the ongoing US-China trade dispute, which has been one of the key factors weighing heavily on the China-proxy Australian Dollar over the past few months or so.
Moving ahead, traders now look forward to the release of RBA Monetary Policy Meeting Minutes, which along with the latest Chinese inflation figures will be looked upon for some fresh impetus during the Asian session on Tuesday.
Technical levels to watch
On a sustained move beyond mid-0.7100s, the pair is likely to aim towards reclaiming the 0.7200 handle with some intermediate resistance near the 0.7175-80 region. On the flip side, weakness below 0.7125 level might continue to find support near the 0.7100 handle, which if broken might turn the pair vulnerable to slide back towards the 0.7050-40 support area.
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