AUD/USD consolidates in a range, just above mid-0.6800s
- AUD/USD lacked any firm directional bias and remained confined in a range.
- A positive mood around equity markets extended some support to the aussie.
- Weaker USD remained supportive, albeit coronavirus jitters capped the upside.
The AUD/USD pair extended its sideways consolidative price moves through the mid-European session and remained confined in a range just above mid-0.6800s.
The pair did gain some intraday positive traction amid the emergence of some US dollar selling on the first day of a new trading week. The uptick, however, lacked any strong bullish conviction and failed ahead of the 0.6900 round-figure mark amid the prevalent cautious mood.
Investors remain concerned that the ever-increasing coronavirus cases could trigger renewed lockdown measures. This, in turn, dampened prospects of a sharp V-shaped global economic recovery and kept a lid on any strong gains for perceived riskier currencies, like the aussie.
Even from a technical perspective, the pair has been oscillating in a range over the past two weeks or so. This makes it prudent to wait for a sustained break in either direction before traders start positioning for the AUD/USD pair's near-term trajectory.
Traders also seemed reluctant to place any aggressive bets, rather preferred to wait on the sidelines ahead of important macro releases scheduled at the start of a new month. This week's busy economic docket kicks off with the release of Chinese PMI figures on Tuesday.
The data might provide some impetus to the China-proxy Australian dollar. The key focus, however, will remain on the closely watched US monthly jobs report. This coupled with developments surrounding the coronavirus saga will help determine the next leg of a directional move.
In the meantime, Monday's only release of Pending Home Sales data from the US will be looked upon for some short-term trading opportunities during the early North American session.
Technical levels to watch