AUD/USD holds near yearly lows above 0.7120 ahead of Aussie data, USD softens

• AUD/USD remains subdued on the first trading day of the week.
• The Australian dollar losses against the greenback on a slightly upbeat market mood.
• US Dollar retreats from the higher levels amid risk-aversion.

AUD/USD treads water in the Asian session on Monday morning. The pair continued to trade under the influence of the previous week’s lower momentum. 

At the time of writing, AUD/USD is trading at 0.7133, down 0.01% for the day.

The US Dollar Index (DXY), which tracks the performance of the greenback against its six major rivals slips from its recent highs as risk appetite improves with global equities and higher US benchmark Treasury yields. 

The greenback broadly remained higher as investors turned to the safer assets on the fear that the coronavirus Delta variant could derail global economic recovery just as central banks begin to roll back COVID-19 pandemic induced stimulus. 

On the other hand, Aussie lost ground as investors assessed the impact of the extended lockdown in Sydney and night curfew until the end of September.

Meanwhile, RBA’s minutes of the meeting released in the previous week showed the concern of the central bank on the recent outbreaks in Australia, and their effect on the economic recovery amid a high degree of uncertainty to the outlook for H2 2021.

It is worth noting that S&P 500 Futures are trading at 4,437.50, up 0.01% for the day.

As for now, traders await  Australia’s Commonwealth Bank Manufacturing Purchasing Managers Index ( PMI), US Markit PMI  to trade fresh trading impetus.

AUD/USD additional levels