AUD/USD rises to test last week's highs near 0.6820

• AUD/USD consolidates last week’s gains above 0.6800.
• A quiet session across financial markets, Wall Street is closed.
• Key events ahead: FOMC minutes on Wednesday and NFP on Friday.

The AUD/USD up marginally on Monday after posting on Friday, the highest daily close in almost three weeks above 0.6800. Price action remains limited on a quiet session for FX.

The pair is moving sideways on a small range amid low volume. It is trading at daily highs at 0.6818, slightly below last week’s high of 0.6820. Earlier it bottomed at 0.6792.

Risks look biased to the upside in the short term. The Aussie faces initial resistance at 0.6820 and then at 0.6845. On the flip side, the first support stands at 0.6770. A key dynamic support stands at 0.6705, a short-term uptrend line; a break lower would point to further losses.

From holidays to key data

Wall Street is closed on Monday. Markets will return to normal on Tuesday after two weeks of subdue action.

On Tuesday the S&P Global Manufacturing PMI for December is due in Australia and in the US. On Wednesday the US will release the ISM Manufacturing and the Federal Reserve the FOMC December meeting minutes. The key report of the week will be on Friday, the US official employment report. Non-farm payrolls are expected to slow down to 200K in December from 263K of November.

Technical levels