- US Dollar Index sticks to small recovery gains near 96.20.
- Atlanta Fed President Bostic is scheduled to deliver remarks later in the session.
The AUD/USD pair is fluctuating in a very tight 30 pip range on Monday as the trading action in the FX markets remain subdued amid a lack of fundamental catalysts. At the moment, the pair is trading at 0.7305, down 0.15% on the day.
The US Dollar Index, which failed to preserve its momentum in the second half of the week and recorded losses on Thursday and Friday, started the new week relatively quiet and struggled to set its next short-term direction. As of writing, the index is up 0.11% on the day at 96.23. There won’t be any macroeconomic data releases from the United States on Monday and markets will be watching the speech by the president of the Federal Reserve Bank of Atlanta, Raphael Bostic.
During the early trading hours of the Asian session, The Reserve Bank of Australia is going to publish the minutes of its last meeting. The RBA Assistant Governor Luci Ellis on Friday argued that the wage growth in the country could be slower to respond to tightening market conditions than initially anticipated and if a similar view is highlighted in the minutes, we could see the aussie come under a selling pressure.
Technical outlook
The pair could encounter the initial resistance at 0.7340 (20-DMA) ahead of 0.7450 (Aug. 9 high) and 0.7500 (psychological level). On the downside, supports are located at 0.7250 (Aug. 17 low), 0.7160 (Dec. 23, 2016, low) and 0.7100 (psychological level).
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