AUD/USD confined in a narrow range around 0.7435 level
The AUD/USD pair maintained its offered tone for the third consecutive session on Monday, albeit has managed to hold few pips above session lows touched during Asian session.
The pair on Monday gapped lower amid risk-off environment and extended last week's reversal move from three-week tops. A mildly cautious environment, in wake of N. Korea's latest ballistic missile test, coupled with subdued action surrounding copper prices was seen weighing on riskier/commodity-linked currencies, including the Australian Dollar.
Despite of the offered tone, the pair has held above one week lows touched last Friday. Against the backdrop of uncertainty about future Fed rate-hike moves through 2017, investors this will take cues from one of the most important US economic indicators - NFP, in order to determine the pair's next leg of directional move.
Meanwhile, political uncertainty from the US continues to fuel concerns over the US President Donald Trump's ability to push through pro-growth economic policies. Hence, sliding US treasury bond yields seems to be lending some support to higher-yielding currencies - like the Aussie, and contributing towards limiting further losses for the time being.
With the US markets closed in observance of Memorial Day, the pair is likely to extend the ongoing subdued price-action ahead of Australian building approvals data, due during early Asian session on Tuesday.
• AUD to remain broadly range bound, anchored in the mid-0.70s - TDS
Technical levels to watch
Bears would be eyeing for a decisive break through 0.7425-20 immediate support, which if broken is likely to accelerate the slide towards the 0.7400 handle en-route 0.7385 horizontal support.
On the flip side, sustained momentum above 0.7450-55 area (session tops) could lift the pair back towards 0.7475 horizontal resistance, above which the pair is likely to move back above the key 0.75 psychological mark and head towards testing its next major hurdle near 0.7515 region.