AUD/USD is trading near the highs, touched 0.7881 earlier
That's just short of the 200-hour MA (blue line) at 0.7882. The pair is currently trading at 0.7877, as the dollar continues to weaken further on the day.
The calendar today is a quiet one, so trading should be dominated by flows and right now it is suggesting dollar weakness - although European traders will have their say in a bit. Equities are also trading higher in Asia, while US yields are lower - which is putting a bit of a drag on the greenback as well.
To the topside, the next level of resistance to look out for is 0.7900, as seen on the daily chart. And that is a keen area of interest for US trading later too - as we have a decent sized option expiry sitting at the figure level.
Meanwhile, commodity prices are also surging on the day so that will keep the aussie bid unless risk sentiment starts to reverse later in European/US trading. This will probably be the more important factor on the day.
But for buyers, the first hurdle is the 200-hour MA followed by the 0.7900 level. Break above, and a retest of the 0.8000 level will be next. But do take note that there is a large-ish option expiry at 0.7900 for Wednesday also.
The dollar remains weak on the day, and is trading near the lows at the moment. The big event for the greenback will be Fed chair Powell's speech tomorrow. As mentioned previously, his speech will be at 1500 GMT but the text for his testimony to congress will be released at 1330 GMT.
