AUD/USD eases from tops, still comfortable above 0.79 handle

Haresh Menghani FXStreet

• Lacks any firm directional bias amid thin liquidity conditions.
• Likely to consolidate further ahead of this week’s key event risks.

The AUD/USD pair stalled its early Asian session rebound near 0.7935 level and quickly retreated around 15-20 pips from session tops.

Currently trading around the 0.7915-20 band, the pair remained within Friday's broader trading range and lacked any firm directional bias amid thin liquidity conditions at the start of a new week.

With Chinese market closed in observance of the Spring Festival, absent economic data led to a subdued/range-bound price action through the Asian session. Traders also refrain from placing any aggressive bets due to the long Presidents Day weekend in the US.

Meanwhile, a plenty of event risks lined up through the course of this week, including the RBA and FOMC monetary policy meeting minutes, would help investors determine the pair's next leg of directional move.

In the meantime, the pair seems more likely to extend its consolidative price action and might take cues from commodity prices, which tends to influence demand for the commodity-linked Australian Dollar.

Technical levels to watch

Bulls might continue to defend the 0.7900-0.7890 immediate support area, which if broken is likely to accelerate the fall towards 0.7860 horizontal level en-route 100-day SMA support near the 0.7820 region.

On the upside, 0.7935-45 zone might continue to act as an immediate resistance, above which the pair is likely to make a fresh attempt towards conquering the key 0.80 psychological mark.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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