AUD/USD consolidates recent gains to 2-week tops, just above mid-0.6900s

The AUD/USD pair struggled to capitalize on its early uptick to two-week tops and now seems to have entered a bullish consolidation phase, just above mid-0.6900s.

The US Dollar remained on the defensive amid expectations of a more dovish Fed, which pulled the US Treasury bond yields down to levels below the 2.0% mark and eventually assisted the pair to build on its recent recovery from multi-month lows. 

The uptick, however, lacked any strong follow-through as investors now seemed reluctant and preferred to wait on the sidelines ahead of a one-on-one meeting between the US President Donald Trump and Chinese President Xi Jinping later this week.

It is worth reporting that renewed optimism over a possible resolution to the prolonged trade disputes between the world's two largest economies had been one of the key factors underpinning the China-proxy Australian Dollar over the past one-week or so.

From a technical perspective, the positive momentum seems to have faltered near 50-day SMA and hence, it would be prudent to wait for a sustained move beyond the mentioned barrier before positioning for any further near-term appreciating move. 

Moving ahead, Tuesday's US economic docket - featuring the releases of the Conference Board's Consumer Confidence Index, Richmond Manufacturing PMI and new home sales data, will now be looked upon for some short-term impetus.

This coupled with speeches by influential FOMC members - including the Fed Chair Jerome Powell, will further collaborate towards producing meaningful trading opportunities and making it yet another eventful day for short-term traders.

Technical levels to watch