AUD/USD clings to modest gains near session tops, eyeing 0.7000 mark

The AUD/USD pair edged higher through the Asian session on Monday and was last seen trading near the top end of its daily trading range, around the 0.6970-80 region.

The pair managed to regain some positive traction on the first day of a new trading week and for now, seems to have snapped two consecutive days of losing streak and for now. The AUD/USD pair has now moved back closer to the key 0.7000 psychological and the uptick was supported by the prevalent risk-on mood.

Despite concerns about the second wave of coronavirus infections, investors seemed convinced that the worst of the pandemic was probably over. This was evident from a positive tone in the equity markets, which undermined the US dollar's safe-haven status and benefitted perceived riskier currencies, like the aussie.

The global risk sentiment was further supported by hopes for the development of drugs and vaccine for the highly contagious novel coronavirus. Moreover, the incoming positive economic data has been fueling prospects of a sharp V-shaped global economic recovery and remained supportive of investors' appetite for riskier assets.

There isn't any major market-moving economic data due for release on Monday. Hence, the broader market risk sentiment will continue to influence the USD price dynamics and produce some meaningful trading opportunities. Meanwhile, bulls might wait for a move beyond the 0.7000 mark before positioning for any further gains.

Technical levels to watch