AUD/USD goes into consolidation after advancing to multi-week highs above 0.6450

• Upbeat market mood lifts AUD higher on Monday.
• US Dollar Index retreats below 100 at the start of the week.
• Major equity indexes in Europe post strong gains. 

The AUD/USD pair closed the previous week modestly higher and gained traction on Monday boosted by the upbeat market mood. After advancing to its highest level since early March at 0.6470, the pair seems to have gone into a consolidation phase and was last seen trading at 0.6460, gaining 1.15% on a daily basis.

USD weakens on Monday

Some encouraging global numbers pointing out to a further slowdown in the number of new coronavirus infections and fatalities, especially in Europe, seems to be providing a boost to the market sentiment at the start of the week. Major Asian equity indexes finished the day with decisive gains and European stocks gained traction to reflect the strong risk-appetite. Moreover, US stocks futures are rising around 1% to suggest that Wall Street is likely to open on a strong footing.

On the other hand, the greenback is struggling to find demand with the US Dollar Index slumping below the 100 handle and helping the pair preserve its bullish momentum. 

There won't be any significant macroeconomic data releases from the US on Monday and the risk perception is likely to continue to dominate the financial markets. The next significant catalyst for the AUD will be Wednesday's inflation reports.

Technical levels to watch for