AUD/USD retreats from multi-month highs, clings to modest gains above 0.7850
- AUD/USD lost its traction before reaching 0.7900 on Monday.
- Copper prices erased gains after reaching new record-high.
- US Dollar Index stays in a consolidation phase a little above 90.00.
The AUD/USD pair advanced to its highest level since late February at 0.7891 on Monday but reversed its direction during the American trading hours. As of writing, the pair was trading at 0.7860, gaining 0.24% on a daily basis.
Copper continues to impact AUD's valuation
Earlier in the day, the sharp increase seen in copper prices provided a boost to the AUD. However, the benchmark three-month copper on the London Metal Exchange, which reached an all-time high of $10,747 in the Asian session, pared its gains and turned negative on the day, making it difficult for the AUD to preserve its strength.
On the other hand, the greenback remains on the back foot in the second half of the day, allowing AUD/USD to stay in the positive territory.
Following Friday's sharp decline on the disappointing US April jobs report, the US Dollar Index stays in a consolidation phase around 90.10 and looks to close the day with small losses. In the meantime, Wall Street's main indexes trade mixed at the start of the week, failing to provide a clue regarding the risk sentiment.
On Tuesday, the only data featured in the Australian economic docket will the HIA New Home Sales. Later in the day, the JOLTS Job Openings report from the US will be looked upon for fresh impetus.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
