AUD/USD surrenders early modest gains, turns flat around 0.6720 level

• AUD/USD Fails to capitalize on the early uptick and remained capped below mid-0.6700s.
• Bulls seemed rather unimpressed by the prevailing risk-on mood, subdued USD demand.
• The focus now shifts to the latest RBA monetary policy meeting minutes, due on Tuesday.

The AUD/USD pair slipped back closer to the lower end of its daily trading range, albeit has still managed to hold its neck above the 0.6700 round-figure mark.

The China-proxy aussie failed to capitalize on its early attempted positive move against its American counterpart and remained capped below last week's swing high level of 0.6750.

Traders preferred to stay on the sidelines

Investors looked past the latest monetary stimulus by the People’s Bank of China, which added to its extensive measures and lowered the medium-term financing rate to a new record low.

The pair also failed to benefit from improving global risk sentiment, which tends to drive flows towards perceived riskier currencies like the Australian dollar, and a subdued US dollar demand.

Market participants seemed reluctant to place any aggressive bets, rather preferred to wait on the sidelines amid relatively thin liquidity conditions on the back of a bank holiday in the US.

In absence of any fresh fundamental catalyst, the pair seems more likely to extend its consolidative price action ahead of the release of the latest RBA monetary policy meeting minutes on Tuesday.

Technical levels to watch