AUD/USD retraces daily gains, remains in tight range above 0.75
Following an extension to the mid-0.75 area, the AUD/USD started to retrace its daily gains amid a mild recovery witnessed in the greenback in the NA session and is now trading flat at 0.7530.
After easing towards the 97 handle, the US Dollar Index recovered its daily losses and is now at 97.25, where it closed the previous week. However, the weak performance of the U.S. T-bond yields is limiting the gains in the greenback. As of writing, the 10-year T-bond is at 2.187%, down 0.6% on the day. After the sell-off witnessed in the European major equity indexes, Wall Street remains under pressure on Monday as well with the Dow Jones Industrial Average and the S&P 500 indexes both dropping 0.3%.
- AUD: Yield driven currency - Westpac
Early in the Asian session, the National Australia Bank Business Confidence Survey for May will be released but it's unlikely to cause any sharp fluctuations. Later in the day, the economic calendar features PPI and NFIB Business Optimism Index data from the U.S.
Technical levels to consider
The pair is trading in a 25-pip range on Monday and the short-term indicators show neutral conditions. With a decisive break above 0.7540 (100-DMA), the pair could aim for 0.7565 (Jun. 7 high) and 0.7600 (psychological level). On the downside, 0.7500 (psychological level) could be seen as the first technical support ahead of 0.7465 (50-DMA) and 0.7420 (May 31 low).
- Recent gains in the AUD could consolidate - ANZ