AUD/USD consolidates recent gains to 2-week tops, just above mid-0.6900s
- The post-FOMC USD bearish pressure remains unabated and continues to lend support.
- Investors turn cautious ahead of Trump-Xi meeting at the G-20 summit later this week.
- Tuesday’s US economic data and Fedspeaks eyed for some short-term trading impetus.
The AUD/USD pair struggled to capitalize on its early uptick to two-week tops and now seems to have entered a bullish consolidation phase, just above mid-0.6900s.
The US Dollar remained on the defensive amid expectations of a more dovish Fed, which pulled the US Treasury bond yields down to levels below the 2.0% mark and eventually assisted the pair to build on its recent recovery from multi-month lows.
The uptick, however, lacked any strong follow-through as investors now seemed reluctant and preferred to wait on the sidelines ahead of a one-on-one meeting between the US President Donald Trump and Chinese President Xi Jinping later this week.
It is worth reporting that renewed optimism over a possible resolution to the prolonged trade disputes between the world's two largest economies had been one of the key factors underpinning the China-proxy Australian Dollar over the past one-week or so.
From a technical perspective, the positive momentum seems to have faltered near 50-day SMA and hence, it would be prudent to wait for a sustained move beyond the mentioned barrier before positioning for any further near-term appreciating move.
Moving ahead, Tuesday's US economic docket - featuring the releases of the Conference Board's Consumer Confidence Index, Richmond Manufacturing PMI and new home sales data, will now be looked upon for some short-term impetus.
This coupled with speeches by influential FOMC members - including the Fed Chair Jerome Powell, will further collaborate towards producing meaningful trading opportunities and making it yet another eventful day for short-term traders.
Technical levels to watch