- AUD/USD continues to have a hard time finding direction.
- US Dollar Index stays relatively quiet following last week’s drop.
- Investors await 10-year US Treasury note auction at 1700 GMT.
The AUD/USD pair closed the previous week virtually unchanged and struggles to make a decisive move in either direction on Monday. After edging lower to 0.7600 area earlier in the day, the pair staged a rebound and was last seen posting small daily gains at 0.7633.
In the absence of significant macroeconomic data releases and fundamental developments, the US Dollar Index is consolidating last week’s losses, moving sideways a little above 92.00.
Later in the session, investors will be paying close attention to the 10-year US Treasury note auction, which is scheduled to take place at 1700 GMT. Ahead of that event, the 10-year US T-bong yield is flat on the day at 1.67%.
On Tuesday, the HIA New Home Sales and the National Australia Bank’s Business Conditions and Business Confidence data from Australia will be looked upon for fresh impetus.
AUD/USD near-term outlook
“AUD/USD spent last week capped by initial resistance at the 0.7663/93 late February low and late March high and also along the 55-day ma at 0.7713 and this leaves the market on the defensive,” said Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank.
“A close below the 0.7564 February low would probably trigger a slide to the 0.7463 December 21 low and the 0.7413 September high.,” Jones added. “The 200-day ma is in close proximity to this at 0.7411 and should hold the downside.”
Additional levels to watch for