AUD/USD consolidates in a range near 2-week tops

   •  The USD/US bond yields corrective slide help build on last week’s recovery move. 
   •  Further gains remain capped ahead of Tuesday’s RBA policy meeting minutes.

The AUD/USD pair now seems to have entered a bullish consolidation phase and was seen oscillating in a narrow trading range near two-week tops, set last week. 

The pair built on last week's goodish rebound from 11-month lows and traded with a mild positive bias for the fourth consecutive session on Monday. The ongoing US Dollar corrective slide, further aggravated following the release of latest softer US consumer inflation figures, was seen as one of the key factors driving the pair higher.

Meanwhile, easing inflationary pressure also seems to have cooled off expectations that the Fed might opt to raise interest rates faster than priced in the market. The same was evident from a follow-through retracement in the US Treasury bond yields, which eventually provided an additional boost to higher-yielding currencies - like the Aussie. 

The pair, however, seemed lacking strong bullish conviction as investors held back from placing aggressive bets ahead of the RBA Assistant Governor Guy Debelle's speech and the more relevant RBA monetary policy meeting minutes, scheduled during the Asian session on Tuesday. 

In the meantime, the pair remains at the mercy of the USD price dynamics and seems more likely to continue with its range-bound price action amid empty US economic docket. 

Technical levels to watch

Immediate support is pegged near 0.7530 area and is followed by the key 0.7500 psychological mark, which if broken might prompt some additional weakness and drag the pair further towards the 0.7475-70 horizontal support.

On the flip side, bulls will be eyeing for a follow-through move beyond 0.7565 area, above which the pair is likely to accelerate the up-move towards reclaiming the 0.7600 handle before eventually darting towards 0.7650 supply zone.