- AUD/USD fluctuates in a relatively tight range on Monday.
- US Dollar Index stays flat below 93.00 ahead of Fedspeak.
- July New Home Sales data will be featured in Australian economic docket on Tuesday.
After losing more than 50 pips on Friday, the AUD/USD pair started the new week under modest bearish pressure and dropped to its lowest level since August 2 at 0.7329. With the market action turning subdued in the absence of high-tier data releases, however, the pair managed to erase its losses and was last seen trading flat on the day at 0.7353.
USD rally loses steam on Monday
The renewed USD strength on the back of the upbeat July jobs report on Friday weighed on AUD/USD. The US Bureau of Labor Statistics reported on Friday that Nonfarm Payrolls increased by 943,000 in July, surpassing the market expectation of 870,000, and the US Dollar Index (DXY) reached its strongest level in two weeks at 92.92. Currently, the DXY is virtually unchanged at 92.78.
Later in the session, June JOLTS Job Openings data will be looked upon for fresh impetus. Additionally, Richmond Federal Reserve President Thomas Barkin and Atlanta Federal Reserve President Raphael Bostic will be delivering speeches. Investors look for clues regarding the timing of asset tapering.
On Tuesday, the HIA New Home Sales and National Australia Bank’s Business Conditions and Business Confidence data will be featured in the Australian economic docket.