AUD/USD continues to contest key resistance to start the new week

The pair is trading little changed on the day now, although the high earlier did touch 0.6595 before backing down to 0.6570 levels at the moment. The run up earlier is facing a bit of stiff resistance at the 200-day moving average (blue line) at 0.6582 and that is the key level to watch on the daily chart.

Essentially, we’re still stuck at the same point from last week here: The next step in AUD/USD has to be a big leap forward

So far today, stock futures are not faring all too well with S&P 500 futures down 0.3%. The Chinese yuan is also cooling off after a hot run in the past week or so and put together, that’s not providing much appetite for AUD/USD buyers to break through just yet.

The dollar side of the equation is also rather tentative for now, as we still await key action from the bond market to drive sentiment.

Considering the lack of economic data releases today, we might just settle to be stuck right under the key resistance level above; all else being equal.