AUD/USD recovers back above 0.7450 level

The AUD/USD pair caught fresh bids at lower level and recovered over 25-pips from session low level near 0.7430 region.

Currently trading around 0.7455-60 region, weekend deal between OPEC and non-OPEC member trigger a fresh wave of risk-on sentiment across global financial markets and is seen supporting the bid tone surrounding riskier / higher-yielding currencies - like the Aussie. Moreover, a subdued greenback price-action, as markets cautiously await for the Fed monetary policy decision on Wednesday, is further supportive of the pair's recovery on the first trading day of the week. 

With a relatively empty economic docket, broader market risk sentiment would remain a key determinant of the pair's movement on Monday. However, firming expectations that the Fed would certainly raise interest rates on Wednesday, coupled with growing speculations of fast rate-tightening cycle next year, is likely to restrict any sharp up-move and the pair might remain confined within its near-term trading range.

Technical levels to watch

On a sustained move above 0.7465 level (session peak), the pair is likely to make a fresh attempt to conquer 0.7500 psychological mark above which the momentum could get extended towards the very important 200-day SMA resistance near 0.7530 region. On the downside, decisive break below 0.7440-30 support (session low) seems to drag the pair immediately towards 0.7415-10 region ahead of 0.7400 round figure mark.