AUD/USD advances to fresh session highs above 0.7700

• AUD/USD is posting modest recovery gains following Friday's drop.
• US Dollar Index is moving sideways around 90.50 on Monday.
• Market action is likely to remain subdued in the remainder of the day.

After losing 50 pips on Friday, the AUD/USD pair started the new week in a calm manner before edging modestly higher during the European trading hours. As of writing, the pair was trading at a fresh session high of 0.7720, rising 0.18% on a daily basis. Nevertheless, in the absence of significant fundamental drivers, the pair's rebound seems to be a correction of its latest drop.

Markets stay quiet ahead of key events

There won't be any high-tier macroeconomic data releases featured in the US economic docket on Monday and investors are likely to refrain from taking large positions ahead of Tuesday's Retail Sales data and Wednesday's FOMC's policy announcements.

Currently, the US Dollar Index is consolidating last week's gains, moving sideways around last Friday's closing level of 90.50.

Meanwhile, US stock index futures are also trading little changed on the day, suggesting that the risk perception will not able to provide a directional clue to AUD/USD either.

On Tuesday, the Reserve Bank of Australia will release the minutes of its latest meeting. A hawkish tone could provide a temporary boost to the AUD. 

Technical levels to watch for