AUD/USD clings to moderate gains just below the 0.7900 average zone

The AUD/USD pair caught some new deals near 0.7900 but lacked any hint of continuing with momentum and remained capped below the 0.7900 mid zone.

Currently operating around the 0.7935 region, the pair held some smaller gains for the second consecutive session and benefited from strong gains in commodity prices, especially copper.

On the other hand, a moderate greenback stock, with the dominant US dollar index languishing near the 13-month lows was still favorable to the tone of the offer surrounding the pair. However, a strong recovery in US Treasury yields was observed, helping to limit the weakness of the USD, while maintaining control of higher yielding currencies such as the Australian. On the other hand, traders also seemed reluctant to make aggressive bets prior to the quarterly impression of Australia's CPI and the speech of RBA governor Philip Lowe during the early Asian session on Wednesday.

The next touch would be the publication of the US Consumer Confidence Index, which is likely to be eclipsed by the repositioning of trade ahead of the FOMC's monetary policy decision on Wednesday.

Technical perspective

Valeria Bednarik, chief analyst at FXStreet, writes that "the 4-hour chart has a neutral bearish stance, as the price kept moving around a horizontal SMA of 20, while the technical indicators turned to the south, the Negative potential is being limited by the dollar's self-weakness, although a downward acceleration through 0.7875 should result in further declines, at least in the short term."