AUD/USD struggles near one-week lows, below mid-0.7100s

   •  Extends last week’s rejection slide from 200-DMA despite a modest USD pullback.
   •  US-China trade optimism might help limit deeper losses amid thin trading conditions.
   •  Traders now eye US data for some impetus ahead of Aussie CPI print on Wednesday.

The AUD/USD pair held on to its mild weaker tone through the early European session on Monday and is currently placed at over one-week lows, around the 0.7140-35 region.

After a rather subdued/range-bound trading action on Friday, the pair met with some fresh supply at the start of a new trading week and extended last week's rejection slide from the very important 200-day SMA, levels just above the 0.7200 round figure mark.

The pair remained depressed for the third consecutive session and seemed rather unaffected by a modest US Dollar pullback from multi-week tops, albeit the latest optimism over a possible US-China trade deal might help limit any sharp corrective slide. 

Moreover, investors might also refrain from placing any aggressive bets amid relatively thin liquidity conditions on the back of Easter Monday holiday in European markets, which might further collaborate towards lending some support at lower levels.

Hence, it would be prudent to wait for a strong follow-through selling before confirming that the pair might have already topped out in the near-term and positioning for any further near-term downside towards testing sub-0.7100 level, or 0.7070 support area.

Later during the early North-American session, the only scheduled release of existing home sales data from the US will be looked upon for some short-term trading opportunities ahead of this week's more relevant quarterly Aussie CPI figures on Wednesday.

Technical levels to watch