AUD/USD: Bulls await fresh catalysts to probe March high above 0.6600

• AUD/USD catches a breather around the 11-week high of 0.6676 flashed Tuesday.
• Traders remain optimistic amid calls of the economic restart, virus cure.
• US President Trump’s measured response to the Hong Kong issue gets no accolades.
• Aussie Construction Work Done, risk catalysts will be in focus for fresh impulse.

AUD/USD consolidates the previous day’s gains while stepping back from 0.6676 to currently around 0.6645 amid the initial Asian session on Wednesday. In doing so, the pair retreats from the highest since March 09 amid a lack of major catalysts which could extend the latest risk-on sentiment.

US-China tussle back in focus?

Although US President Donald Trump hesitates to directly attack Beijing over its rush to secure power in Hong Kong, hints to hear more about US sanctions on China by the end of the week seem to probe the recent optimism.

The Republican leader was earlier expected to discuss sanctions on the Asian major with US Secretary of State Mike Pompeo. However, nothing major has rolled out since then except for the assurance that they are doing something.

With this, the market’s risk-on sentiment catches a breather amid a lack of fuel to propel the previous day’s optimism further.

That said, the global markets cheered the gradual reopening of major economies as well as additional efforts to find a cure to the coronavirus (COVID-19) on Tuesday. Also supporting the Aussie pair could be US President Trump’s surprise refrain from flashing fires on the Hong Kong issue.

In doing so, Wall Street traders partied while US 10-year Treasury yields also inched closer to 0.70% by the end of the North American session on Tuesday.

Moving on, Australia’s first quarter (Q1) Construction Work Done, expected -1.5% versus -3.0% prior, could act as an immediate catalyst. However, the survey period fails to include the virus-led lockdown and might be considered less important than the updates over US-China tension.

Technical analysis

The pair’s failure to close beyond a 200-day SMA level around 0.6660 may take clues from overbought RSI conditions to revisit 0.6600 round-figure. Though, bears will fear taking entries unless witnessing a downside break of the monthly support line, currently around 0.6460. Alternatively, the March month’s high of 0.6686 and 0.6700 round-figure could lure the bulls during the pair’s further upside.