AUD/USD rebounds from one-week lows back above 0.6950

• US dollar loses momentum as Wall Street turns higher.
• AUD/USD keeps trading in consolidation range under 0.7000.

The AUD/USD pair extended gains during the American session on the back of an improvement in risk sentiment. Eelier on Tuesday, the pair bottomed at 0.6920, the lowest intraday level since July 3. Recently hit a fresh daily high at 0.6970.

A slide across the board of the US dollar as equity prices in Wall Street turned decisively to the upside, boosted AUD/USD. The DXY is falling 0.20%, at 96.25, on its way to the lowest close in a month.

Economic data from the US showed inflation rose slightly above expectations in June. The number had no impact on markets. Traders are looking onto US coronavirus cases and Q2 earnings.

Technical outlook

The AUD/USD pair continues to move in a wide consolidation range between 0.6920 and 0.7000. Price needs to break and hold above 0.7000 to clear the way to more gains or post a close under 0.6910 (20-day moving average) to point to more losses.