AUD/USD Flirts With Session Lows

The Australian dollar fell against the US dollar during the Asian session and was hovering near the lower end of the daily trading range, just above the 0.7100 mark.

The pair saw some fresh sell-offs during the first day of the week and gave up the positive movement of the previous session around the 0.7157 area. The pair has benefited from the shift in risk sentiment to the US dollar as a safe haven, as concerns are increasing about the second wave of the Coronavirus, which may impede the economic recovery, along with uncertainty around the US stimulus and political uncertainty.

House of Representatives Nancy Pelosi remained optimistic about the stimulus talks and said she expected a response from the White House on Monday regarding the spending plan, but investors are still not convinced that US lawmakers are able to seal the deal before the presidential election with stiff opposition from Republicans in the Senate.

AUD/USD has stopped three consecutive sessions of gains. It is assumed that a break below 0.7100 paves the way towards additional weakness and the pair may accelerate the decline to the medium support 0.7045 before the psychological mark of 0.7000.