AUD/USD continues to retrace last week's gains, holds above 0.80

Amid a lack of significant macroeconomic data releases and fresh fundamental developments, the AUD/USD pair is making a technical correction on Monday, erasing last week's robust earnings. As of writing, the pair was trading at 0.8035, losing 0.22% on the day.

The US Dollar Index, which tested the 91 handle and refreshed its lowest level since January 2015 on Friday, started the day with a bullish gap and is looking to preserve its bullish momentum in the early NA session. At the moment, the index was at 91.70, up 0.4% on the day. Although the index's upsurge hadn't been supported by data, the sharp increase in the US Treasury yields with the 10-year reference gaining more than 2%, seems to be providing a boost to the greenback. 

The economic docket in the U.S. won't be offering anything that could impact the price action, and the pair is likely to continue to make technical moves track the DXY fluctuations. In the early Asian session on Tuesday, the National Australia Bank will be releasing the Business Confidence & Conditions index numbers, which are likely to be ignored by the participants. 

Technical outlook

Today's fall doesn't seem strong enough to suggest that a deeper technical correction might be starting as the pair is trading in a 30-pip range since the start of the day. In fact, the RSI indicator on the daily graph is still between the 50 and 70 marks, showing that the bullish momentum is likely to continue in the short-term. A decisive break below 0.8000 (psychological level) could allow the pair drop further towards 0.7960 (20-DMA) and 0.7870 (Aug. 31 low). On the upside, resistances could be encountered at 0.8125 (Sep. 8 high), 0.8165 (May 14, 2015, high) and 0.8200 (psychological level).