AUD/USD dribbles around 0.7150 in search of fresh clues ahead of Aussie GDP, US NFP

• AUD/USD remains sidelined after printing the biggest weekly gains since mid-March.
• Firmer sentiment, hawkish RBASpeak and softer USD allowed bulls to keep reins.
• Market sentiment dwindles amid a lack of major catalysts, bank holiday in the US.
• Risk catalysts are important for intraday moves, Aussie Q1 GDP, US jobs report for April are crucial for the week.

AUD/USD takes rounds to mid-0.7100s as bulls take a breather following the biggest weekly jump in March. That said, a lack of major data/events restrict the Aussie pair’s moves around 0.7150 during Monday’s initial Asian session.

It’s worth noting that the week-start consolidation of recent gains, as well as caution ahead of this week’s key US employment numbers for April, namely the Nonfarm Payrolls (NFP) and the Unemployment Rate, seem to test the AUD/USD bulls.

On the same line are geopolitical headlines concerning Russia’s aggression in Donbas, as well as covid fears in China.

Additionally, the US dollar weakness could also be linked to the AUD/USD gains. The US Dollar Index (DXY) dropped for the second consecutive week to refresh the monthly low at the latest. That said, risk-on mood and mixed US data could be linked to the greenback’s recent weakness. Also weighing on the DXY are the repeated comments from the Fed policymakers suggesting 50 bps rate hikes and the latest FOMC minutes that raised concerns over a softer rate lift after September.

On Friday, the US Personal Consumption Expenditure (PCE) data came in mixed for April, mostly downbeat, as the Core PCE Price Index, the Fed’s preferred measure of inflation, matched 4.9% YoY forecasts versus 5.2% prior. Further, Personal Income rose less than expected but the Personal Spending improved.

Amid these plays, the Wall Street benchmarks posted another positive day but there was no major change in the US 10-year Treasury yields. That said, the S&P 500 Futures print 0.20% intraday gains at the latest.

Considering a light calendar and the US Bank holiday, AUD/USD traders should pay attention to the risk catalyst for fresh impulse.

Technical analysis

A two-week-old ascending trend line, around 0.7085 by the press time, directs AUD/USD buyers towards the 50-DMA and the monthly peak, respectively around 0.7260 and 0.7265.