AUD/USD consolidates recent gains to multi-month tops, below 0.7000 mark

• The upbeat market mood continued lending some support to the aussie.
• A modest USD uptick seemed to be the only factor capping further gains.

The AUD/USD pair now seems to have entered a bullish consolidation phase and was seen oscillating in a narrow trading band below the key 0.7000 psychological mark.

The pair traded with a mild positive bias for the eight-consecutive session on Monday, albeit the uptick lacked any strong follow-through and remained capped below the six-month tops set in the previous session. A combination of diverging forces failed to provide any meaningful impetus to the AUD/USD pair and led to a subdued/range-bound trading action through the mid-European session.

The US dollar broke out of its daily consolidative trading range and built on Friday's post-NFP positive move. This, in turn, acted as one of the key factors that kept a lid on any additional gains for the AUD/USD pair. However, the upbeat market mood continued lending some support to perceived riskier currencies, including the aussie and might help limit any meaningful pullback.

The global risk sentiment remained well supported by expectations that the worst of the coronavirus pandemic was over. Adding to this, the incoming economic data further fueled hopes about a V-shaped recovery for the global economy. Investors now seemed reluctant to place fresh bets, rather preferred to wait for a fresh catalyst before positioning for the AUD/USD pair's near-term trajectory.

There isn't any major market-moving economic data due for release from the US. Hence, the broader market risk sentiment, along with the USD price dynamics might continue to play a key role in influencing the AUD/USD pair and produce some meaningful trading opportunities.

Technical levels to watch