AUD/USD climbs to near 4-week tops, around 0.6980 area

The USD bearish pressure remained unabated through the early North American session and lifted the AUD/USD pair to near four-week tops, around the 0.6980 region in the last hour.

Despite concerns about the continuous rise in coronavirus cases, investors remained optimistic over a sharp V-shaped global economic recovery. This, in turn, remained supportive of the prevalent upbeat market mood, which weighed heavily on the safe-haven US dollar and benefitted perceived riskier currencies – including the aussie.

The AUD/USD pair prolonged its positive move witnessed over the past one week or so and continued gaining traction for the fifth consecutive session on Monday. Bulls might now be eyeing a move towards reclaiming the key 0.7000 psychological mark, above which the pair is likely to aim to retest YTD tops, around the 0.7065 region.

Market participants now look forward to the release of US ISM Non-Manufacturing PMI for a fresh impetus. The gauge is anticipated to come in at 50.1 for June. A surprisingly positive reading will offer further evidence that the worst of the coronavirus pandemic was probably over and provide an additional boost to the already stronger global risk sentiment.

It, however, remains to be seen if bulls can maintain their dominant position or opt to take some profits off the table as the focus now shifts to the latest RBA policy update. The Australian central bank is scheduled to announce its decision during the Asian session on Tuesday, which might play a key role in influencing the AUD/USD pair's near-term trajectory.

Technical levels to watch