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  • Greenback goes into consolidation following last Friday’s rally.
  • Chinese premier Li says China can resist downwards pressure on the economy.

After posting modest losses on Friday and closing flat on the weekly chart, the AUD/USD pair gained traction on Monday and was last seen trading near 0.7105, where it was up 0.32% on a daily basis.

The improved market sentiment on Monday seems to be helping the risk-sensitive AUD gather some strength. Moreover, Chinese premier Li Keqiang earlier today said that China had the ability to resist downward pressure on the economy to provide additional support to the currency. There won’t be any significant macroeconomic data releases from Australia this week and the market’s risk perception and the USD’s performance are likely to impact the pair’s price action.

Ahead of Chicago Fed’s National Activity Index and Dallas Fed’s Manufacturing Index, the US Dollar Index continues to fluctuate in a tight daily range a little above 96.50. Moreover, the RBA’s Assistant Governor Luci Ellis is scheduled to deliver a speech later in the day.

Key technical levels