- US-China trade tensions continue to weigh on the Australian Dollar.
- Dismal US data-led intraday uptick turns out to be rather short-lived.
- Tuesday’s RBA policy meeting minutes eyed for some short-term impetus.
The AUD/USD pair held on to its offered tone through the early North-American session and remained within striking distance of multi-month lows set on Friday.
After an early uptick to an intraday high level of 0.6885, the pair met with some fresh supply and drifted into the negative territory for the fourth consecutive session on Monday.
The pair did get a minor lift amid a modest US Dollar weakness following the disappointing release of Empire State Manufacturing Index, albeit once again failed to capitalize on the move.
Sentiment surrounding the China-proxy Australian Dollar remained fragile amid growing concerns over a further escalation in the trade tensions between the world’s two largest economies.
Hence, a follow-through weakness, led by some technical selling below multi-month lows near the 0.6860 region, remains a distinct possibility ahead of Tuesday’s RBA policy meeting minutes.
The key focus, however, will remain on the latest FOMC monetary policy update, scheduled to be announced on Wednesday, which will help investors to determine the pair’s near-term trajectory.
Technical levels to watch