- AUD USD consolidates last week’s gains below 0.7400 on Monday.
- The US dollar index continues to decline at the beginning of the week.
After closing the previous week in positive territory, the pair AUD/USD it rose to its highest level since Sept. 1 at 0.7408 in the early trading hours of the Asian session on Monday. However, the pair struggled to preserve its bullish momentum and appears to have entered a consolidation phase near 0.7380.
DXY extends last week’s slide
Data from China showed on Monday that economic activity in the manufacturing and services sectors expanded at a robust pace in November and helped the AUD, China’s proxy, pick up steam at the beginning of the week.
Meanwhile, the dollar struggled to find demand on Monday and the US dollar index (DXY) fell to its lowest level in more than 30 months at 91.55. Although the DXY rebounded and rose above 91.70 during the European session, it turned south and allowed AUD / USD to limit its losses.
October Pending Home Sales, ISM Chicago PMI, and Dallas Fed Manufacturing Companies Index To Be Top Of The US Economic Agenda Meanwhile, Major Wall Street Indices Still On Track To Start The Day modestly to the downside and a cautious mood in the market could cause AUD / USD to start to decline.
On Tuesday, the AiG Manufacturing Performance Index and Commonwealth Bank Manufacturing PMI will be released from Australia.
Technical levels
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