AUD/USD remains capped below mid-0.7900s supply zone

Haresh Menghani FXStreet

The AUD/USD pair continued with its struggled to move past 0.7950-55 supply zone and retreated from highs, albeit has managed to hold onto minor gains through the mid-European session.

The pair's pull-back lacked any catalyst and could be solely attributed to repositioning trade at an important technical resistance zone, despite of a broadly weaker US Dollar. Meanwhile, the prevalent risk-off environment was also seen dampening demand for riskier currencies - like the Aussie.

Also restricting gains for the major was the expectation of an announcement of the US President Donald Trump’s long-awaited, highly-anticipated tax reform plan this week.

However, the strong bullish sentiment around commodity space underpinned demand for commodity-linked currencies, including the Australian Dollar, and has helped the pair to hold in positive territory for the second consecutive session.

In absence of any major market moving economic releases, the pair's would continue to be influenced by the USD price dynamics and broader market risk sentiment as investors brace for this week's important US macro releases, including the US GDP revision and the keenly watched non-farm payrolls (NFP) data on Friday.

Technical levels to watch

A follow through weakness below the 0.7930-25 region is likely to drag the pair below the 0.7900 handle towards last Thursday's swing lows support near 0.7865 area.

On the upside, bulls would be eyeing for a sustained break through the 0.7950-55 important barrier, above which the pair is likely to make a fresh attempt towards conquering the key 0.80 psychological mark before eventually darting to its next hurdle near the 0.8035-40 region.

Author

Haresh Menghani

FXStreet

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

GBP/USD stays firm near 1.3350 amid easing Mideast tensions

GBP/USD builds on Friday's modest bounce from a three-week low and gains strong follow-through positive traction at the start of a new week on Monday. This marks the second straight day of gains, with the major trading near 1.3350 in European trading amid a pause in the Middle East conflict and a broadly weaker US Dollar. Traders brace for the Fed and BoE policy announcements later in the week.

EUR/USD holds gains near 1.1400 as USD slips on Iran diplomacy hopes

EUR/USD holds sizeable gains near the 1.1400 mark in the European session on Monday. The intraday strength is sponsored by a broadly weaker US Dollar, weighed down by renewed optimism over a diplomatic resolution to end a five-month-old US-Iran war.

Gold stands firm on US-Iran diplomacy hopes, reduced Fed hike bets; bulls lack conviction

Gold (XAU/USD) continues with its struggle to capitalize on a modest gap-up opening beyond the $4,100 mark through the early European session on Monday as bulls seem hesitant ahead of the crucial FOMC meeting this week. Heading into the key central bank event, reviving hopes for a diplomatic resolution to end a five-month-old US-Iran war led to a steep fall in crude oil prices.

Cardano: Under pressure as bearish derivatives cap recovery

Cardano remains under pressure, trading lower at $0.165 on Monday after mild losses in the previous week. Weakening derivatives metrics and subdued momentum indicators suggest that ADA's upside move remains limited, keeping downside risks in focus. Derivatives data for Cardano shows bearish sentiment among traders.

Australian Dollar outlook: Chances of another rally won’t be decided in Canberra, but in Washington

The Australian Dollar rode a rollercoaster in the first half of the year, hitting a four-year high and then correcting. The currency enters the second half with an outlook full of uncertainty due to renewed hostilities in the Middle East, which clouds the inflation outlook and interest rates.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.