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  • The Aussie is back into consolidation ranges near the 0.74 level as buyers and sellers play tug of war.
  • China data is due this week, and the econ calendar for the AUD remains limited.

The AUD/USD opens the new week trading close to the 0.7400 handle, a level that has drawn in price action repeatedly since the pair first dropped into the major level back in June.

A strong US Dollar is keeping the Aussie under wraps, with expectancy for a steady clip to US Federal Reserve rate hikes still on the cards, which would only fuel a continued strengthening USD over the AUD, and the high Greenback is also seeing metals prices under pressure as well, further constraining the AUD across the broader markets. US-China trade war tensions continue to simmer, and a projected slowdown in the Chinese economy will further hamper bullish attempts to push the Aussie higher, though efforts by China’s authorities to avert a slowdown could have a bolstering effect on the Aussie, limiting downside moves.

The economic calendar sees a slow start to the week for the AUD, and the first real meaningful reading won’t come until early Tuesday, with New Home Sales expected early in the day. Building Permits will also be printing at 01:30 GMT Tuesday, which are tentatively expected to remain steady at 0.0%, after the previous period’s disappointing -3.2% contraction.

AUD/USD Levels to watch

The Aussie-Dollar pairing continues to consolidate near the 0.7400 major technical level, and according to FXStreet’s own Valeria Bednarik: “the pair is technically neutral, with sellers around the mentioned 0.7447/50 region and buyers surging on approaches to 0.7300. The daily chart shows that the pair is still neutral, hovering around a flat 20 DMA and with technical indicators back and forth around their midlines, although the pair remains well below a bearish 100 DMA, this last around 0.7520. Shorter term, and according to the 4 hours chart, the technical picture is quite alike, as the pair is trading a few pips below a congestion of moving averages, while indicators head nowhere around their midlines.”

Support levels: 0.7370 0.7330 0.7300      

Resistance levels: 0.7445 0.7490 0.7520