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  • AUD/USD is fluctuating in a tight range on Monday.
  • Market mood turns upbeat after US President Trump signs stimulus bill.
  • Trading action is expected to remain subdued for the remainder of the week.

After closing the previous week virtually unchanged, the AUD/USD pair advanced to a daily high of 0.7623 in the early European morning but reversed its direction ahead of the American session. As of writing, the pair was down 0.05% on a daily basis at 0.7595.

USD struggles to find demand

US President Donald Trump signed the coronavirus relief and government funding bill into law Sunday and risk flows started to dominate financial markets at the start of the week. Moreover, the EU and the UK finally reached a trade deal ahead of the Christmas holiday and provided relief to markets.

Although risk flows helped the AUD find demand, thin trading conditions make it difficult for major pairs to make a decisive move in either direction.

Meanwhile, S&P 500 Futures are up 0.73% on the day at 3,722 and the US Dollar Index is posting small daily losses at 90.26.

There won’t be any significant data releases featured in the US nor the Australian economic docket in the remainder of the week and AUD/USD is likely to extend its sideways grind.

Technical levels to watch for