AUD/USD remains stuck in a range around mid-0.6300s
|- AUD/USD consolidated last week’s strong positive move to one-month tops.
- Concerns over coronavirus, the risk-off mood kept a lid on any strong gains.
- The downside remains cushioned amid a weaker tone surrounding the USD.
The AUD/USD pair lacked any firm directional bias and remained confined in a narrow trading band, around mid-0.6300s through the early European session.
A combination of diverging forces failed to assist the pair to build on last week's strong positive move of over 370 pips to one-month tops and led to subdued consolidative price action for the second straight session.
The US dollar remained depressed in the wake of the Fed's announcement last week to provide additional loans of up to $2.3 trillion to support the economy and softer-than-expected US consumer inflation figures released on Friday.
The supporting factor was negated by a fresh wave of the global risk-aversion trade, which held investors from placing aggressive bullish bets around the perceived riskier Australian dollar and kept a lid on any meaningful gains.
The global risk sentiment took a hit on the first day of a new trading week after China reported the highest number of new daily cases in nearly six weeks and fueled fears about the second round of COVID-19 outbreak.
Investors also seemed reluctant amid relatively thin liquidity conditions on the back of Easter Monday holiday in most European markets and preferred to wait for a fresh catalyst before positioning for the pair's next leg of a directional move.
Developments surrounding the coronavirus saga might continue to play a key role in influencing the broader market risk sentiment and produce some meaningful trading opportunities in the absence of any major market-moving economic releases.
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.