Progresses Higher

The greenback weakened further on Monday which helped AUD/USD make further gains, the pair rose to highs of 0.7766 before retreating slightly into the close, the rate last up 4 pips at 0.7758.

• From a technical perspective AUD/USD broke through 0.7675 Thursday but has since reversed the sharp move lower. Last week's break lower does signal the end of the recent period of consolidation that has been in place since mid-April. A resumption of weakness would open 0.7586, Apr 13 low and 0.7532, Apr 1 low and a key support. Initial resistance is at 0.7773, Jun 2 high ahead of 0.7813, May 18 high. A break of the latter would ease any developing bearish pressure.
• First on the economic docket today is weekly consumer confidence data with the highlight coming in the form of the NAB business survey at 0230BST/1130AEST. CBA notes: "Business conditions and confidence reached new record highs in April. The May survey will capture businesses' reaction to the May 2021 Budget. The Budget was favourable for businesses with the immediate asset write‑offs and loss carry‑back provisions continued for another year."