AUD/USD climbs above 0.7000 as USD remains under pressure
- AUD/USD pares early losses, trades a little above 0.7000.
- US Dollar Index is pushing lower below 96.00.
- The RBA's Meeting Minutes will be released on Tuesday.
The AUD/USD pair started the new week with a small bearish gap and stretched lower toward 0.6970 area during the Asian session. With the greenback struggling to find demand during the European trading hours, the pair gained traction and pares its daily losses. As of writing, AUD/USD was posting small daily gains at 0.7001.
Upbeat market mood hurts USD on Monday
Heightened hopes of EU leaders reaching an agreement on the budget and the recovery fund seems to be providing a boost to risk sentiment and weighing on the safe-haven USD. At the moment, the US Dollar Index (DXY), which tracks the greenback's performance against a basket of six major currencies, is down 0.22% on the day at 95.80.
The US economic docket won't be featuring any significant macroeconomic data releases on Monday. If Wall Street pushes higher at the start of the week, the DXY could extend its slide and help AUD/USD edge higher. After losing as much as 0.4%, S&P 500 futures are now virtually flat on the day.
In the early trading hours of the Asian session on Tuesday, investors will be paying close attention to the Reserve Bank of Australia's (RBA) Meeting Minutes. Additionally, RBA Governor Phillip Lowe is scheduled to deliver a speech at 0230 GMT.
Technical levels to watch for