AUD/USD trying to build a base above 0.74 for the new week
- Aussie back on the rise after last week's market sentiment pushed down the US Dollar.
- A lack of early-week market data for the AUD will see broader sentiment remaining a key controlling component of direction.
The AUD/USD is trading into 0.7430 in the new week's early action, near Friday's close following a late-week lift out of recent consolidation.
The Aussie heads into a new week following last Friday's US trade tariffs on China as well as the US Non-Farm Payrolls, and broader markets chose to focus on the positive jobs report, allowing the USD to soften on improving risk sentiment despite still-spiraling trade threats being hurled back and forth between the US and China. The receding stance of the Greenback is allowing risk assets like the AUD to stage a corrective comeback, and the AUD/USD has lifted from last week's 18-month low of 0.7309.
The early week is a quiet showing for the Aussie on the economic calendar, and broader market focus will remain on trade dispute issues between the US and most of its major trading partners, while on Wednesday the AUD will see the Westpac Consumer Confidence survey early on at 00:30 GMT, with a new reading of Home Loans data at 01:30 GMT.
AUD/USD levels to watch
The Aussie seems to be leaning to the bullish side thanks to a softening in the US Dollar, and as FXStreet's own Valeria Bednarik noted, "in the 4 hours chart, the upside seems more constructive, as the pair settled above its 20 and 100 SMA, with the shorter crossing above the larger one, as technical indicators hold well above their midlines, barely losing upward strength near overbought levels. The pair topped in the 0.7440/50 region in the past three weeks, with a break above it needed to confirm additional gains ahead."
Support levels: 0.7400 0.7370 0.7335
Resistance levels: 0.7445 0.7480 0.7510