AUD/USD loses traction, drops to fresh six-day lows near 0.7550
- AUD/USD turned south ahead of the American session.
- US Dollar Index recovers to 92.00 area on Monday.
- Wall Street looks to start the new week flat.
Following last week's rebound, the AUD/USD pair opened the new week in a calm manner and moved sideways in a very tight range during the first half of the day. With the greenback starting to gather strength, however, the pair lost its traction and was last seen trading at its lowest level in nearly a week at 0.7558, losing 0.36% on a daily basis.
DXY tests 92.00
The US Dollar Index (DXY) lost 0.55% last week but managed to stage a recovery on Monday. In the absence of significant fundamental developments, the cautious market mood seems to be helping the USD find demand ahead of the American session. At the moment, the DXY is up 0.2% on the day at 91.99.
Meanwhile, the S&P Futures trade flat, suggesting Wall Street's main indexes are likely to open near Friday's closing levels.
Later in the session, the Dallas Fed Manufacturing Business Index for June will be looked upon for fresh impetus. There won't be any high-tier data releases featured in the Australian economic docket on Tuesday.
Assessing AUD/USD's near-term technical outlook, "the current movement is viewed as the early stages of a consolidation phase and AUD is expected to trade within a 0.7520/0.7650 for now," said UOB Group analysts.
AUD/USD sticks to the rangebound theme – UOB.
Technical levels to watch for