- Falling copper prices seem to be weighing on the AUD on Monday.
- US Dollar Index consolidates last week's gains, stays above 98.
- Coming up: National Australia Bank's Business Confidence Index.
The AUD/USD pair lost 50 pips last week and started the new week under modest bearish pressure as the AUD struggled to find demand amid the uncertainty surrounding the United States (US) - China trade conflict and falling copper prices. Nevertheless, the broad USD weakness allowed the pair, which was last down only 0.07% on the day at 0.6855, limit its losses.
Focus will remain on US-China trade developments
Although remarks from both sides last week suggested that the US and China have agreed to roll back tariffs as part of phase one of the trade deal, US President Trump on Friday said that he hasn't yet agreed to retract tariffs to hurt the optimism and weigh on antipodeans. On Tuesday, President Trump will be speaking at a luncheon organized by the Economic Club of New York and market participant will look for clarity regarding the trade dispute with China.
Meanwhile, falling copper prices put additional weigh on the AUD on Monday. As of writing, copper is down 1% on the day at $2.6585.
On the other hand, after rising more than 1% last week, the US Dollar Index staged a technical correction in the absence of significant macroeconomic drivers and was last down 0.25% on the day at 98.16 to help the pair find support.
In the early trading hours of the Asian session, the National Bank of Australia's Business Conditions and Business Index data will be looked upon for fresh impetus.
Technical levels to consider
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