Risk sentiment is looking rather dour on the session with US futures down by 0.5% to a session low and US 10-year yields are down by over 5.6 bps to 1.647% currently.
In turn, that is weighing further on the aussie following poor Chinese data earlier on with AUD/USD now hitting a low of 0.6770. Of note, price is threatening a break back below the 200-hour MA (blue line) @ 0.6777.
Hold below that level and sellers will regain near-term control of the pair with support around 0.6750 back in focus.
The overnight move higher stalled at a familiar level as price continues to struggle to firmly break above near-term resistance around 0.6819 - much like what we saw last week.
Since then, the continued signs of exhaustion is weighing on the pair and now sellers look to seize back near-term control ahead of the Australian jobs data tomorrow. That will be the next key risk event to watch out for in the pair this week.
In the mean time, continue to pay attention to the risk mood as that remains a key factor in dictating trading sentiment today and I reckon more so later in US trading.