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   “¢   Easing US-China trade tensions extend some support.  
   “¢   The ongoing USD upsurge seemed to cap any up-move.
   “¢   This week’s important US releases should provide fresh impetus.

The AUD/USD pair lacked any firm directional bias and seesawed between tepid gains/minor losses through the early European session on Monday.

Easing US-China trade tensions, following the US Treasury Secretary Mnuchin’s announcement that the Trump administration is putting US trade war with China “on hold”, extended some support to the China-proxy Australian Dollar.  

This coupled with a subdued US Treasury bond yields and bullish copper prices remained supportive for higher-yielding/commodity-linked currencies – like the Aussie.  

The positive factors, however, were largely negated by a strong follow-through US Dollar upsurge, which now seemed the only factor capping any meaningful up-move for the major.  

In absence of any major market moving economic data, the pair remains at the mercy of USD price-dynamics. Moving ahead, this week’s important US releases, along with comments by influential FOMC members would drive sentiment surrounding the greenback and eventually provide some fresh impetus.

Technical levels to watch

The 0.7540-50 region might continue to act as an immediate resistance, above which the pair is likely to aim towards reclaiming the 0.7600 handle. On the flip side, slide below the 0.7500 handle might continue to find some immediate support near the 0.7485-75 region, which if broken might turn the pair vulnerable to head back towards 0.7450-45 horizontal support.