AUD/USD struggles for direction, stuck in a range below mid-0.7700s

A combination of factors failed to assist AUD/USD to capitalize on the post-NFP positive move.
A modest pickup in the US bond yields helped revived the USD demand and capped the upside.
Disappointing Chinese Trade Balance data, softer risk tone acted as a headwind for the aussie.

Haresh Menghani FXStreet

The AUD/USD pair extended its sideways consolidative price action through the early European session and remained confined in a range below mid-0.7700s.

The pair struggled to capitalize on Friday's strong intraday positive move of nearly 100 pips and witnessed subdued/range-bound moves on the first day of a new trading week. As investors looked past the softer US monthly jobs report, the US dollar found some support from a modest uptick in the US Treasury bond yields. This, in turn, was seen as a key factor that kept a lid on any meaningful upside for the AUD/USD pair.

It is worth recalling that the headline NFP print showed that the US economy added 559K new jobs in May as against 650K anticipated. The data tempered expectations that the Fed will tighten monetary policy sooner rather than later. That said, concerns about rising inflationary pressure acted as a tailwind for the US bond yields ahead of this week's release of the latest US consumer inflation figures on Thursday.

Apart from this, mixed Chinese Trade Balance data and a softer tone around the US equity futures further held traders from placing any aggressive bullish bets around the perceived riskier aussie. In USD terms, China's trade surplus fell to $45.53 billion in May from $50.5 billion previous while imports and exports both missed market estimates. This was seen as another factor that capped gains for the AUD/USD pair.

There isn't any major market-moving economic data due for release from the US on Monday. Hence, the broader market risk sentiment and the US bond yields will continue to play a key role in influencing the USD price dynamics. This, in turn, might provide some impetus to the AUD/USD pair and allow traders to grab some short-term opportunities.

Technical levels to watch

AUD/USD

Overview
Today last price	0.773
Today Daily Change	-0.0010
Today Daily Change %	-0.13
Today daily open	0.774

Trends
Daily SMA20	0.7752
Daily SMA50	0.7722
Daily SMA100	0.7727
Daily SMA200	0.7536

Levels
Previous Daily High	0.7747
Previous Daily Low	0.765
Previous Weekly High	0.7774
Previous Weekly Low	0.7644
Previous Monthly High	0.7892
Previous Monthly Low	0.7674
Daily Fibonacci 38.2%	0.771
Daily Fibonacci 61.8%	0.7687
Daily Pivot Point S1	0.7677
Daily Pivot Point S2	0.7615
Daily Pivot Point S3	0.758
Daily Pivot Point R1	0.7774
Daily Pivot Point R2	0.7809
Daily Pivot Point R3	0.7871

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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