AUD/USD near top end of 15-pips narrow trading range

The AUD/USD pair seesawed between tepid gains/minor losses and was confined in 15-pips narrow trading range above the 0.75 psychological mark.

Currently placed at session tops near 0.7535 region, spot struggled for a firm direction at the start of a new trading week amid holiday thinned liquidity conditions as most Australian banks remained closed on Monday in observance of the Queen's Birthday.  

A strong pick-up in the US treasury bond yields, against the backdrop of growing prospects for an eventual Fed rate-hike action this week, kept a lid on higher-yielding - like the Aussie. Moreover, a mildly softer tone around commodity space, especially copper, also did little to extend any support and assist the pair to build on last week's strong up-move.

The pair, however, has managed to hold in neutral territory in absence of any follow through US Dollar buying interest as investors remain focused on this week's important US macro releases and the much awaited FOMC decision on Wednesday before committing to the pair's next leg of directional move.

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Technical levels to watch

Immediate resistance is pegged near 0.7545-50 region, nearing the very important 200-day SMA, above which a fresh bout of short-covering has the potential to lift the pair towards 0.7585 horizontal resistance ahead of the 0.7600 round figure mark.

On the downside, sustained weakness below 0.7520 level is likely to accelerate the slide further towards the 0.75 handle before the pair eventually drops to testing 0.7465 horizontal support.