Amid the slightly more positive risk tilt today, the pair is keeping above its key hourly moving averages for now at 73.80-86. However, gains are also caught wanting as the 74.00 level offers a key resistance level for the pair over the past few sessions.
It is all about the push and pull in risk sentiment for the pair to start the week and so far the market is keeping a slightly more positive risk tilt but nothing overwhelming.
Looking at the bigger picture:
Topside momentum is also further limited by the key daily moving averages around 74.30-38 with the 50.0 retracement level of the recent swing move lower at 74.33 also offering an additional layer of resistance for buyers.
Meanwhile, downside momentum is also rather limited now as seen in the hourly chart above close to 73.60-70 but if sellers can chase a move below those levels, we could see price action start to accelerate lower towards 73.00 potentially.
For today, the focus will stay on the risk mood but during the course of the week, just take note that virus headlines won't just be the major factor influencing the pair.
We will be getting Australian wages data on Wednesday - a gauge of inflation pressures - followed by the labour market report on Thursday, which is the key report that the RBA is currently focusing on right now.
As such, any major hiccup in those economic releases could precipitate further weakness in the aussie in the near-term; vice versa.