• AUD/USD gapped down to open the week then traded 0.6969-0.6995 overnight

• An 8-session high traded before the pair fell and then turned lower

• NY opened near 0.6970, AUD/UDS traded down -0.15% in early NY action

• USD, US yield gains & USD/CNH's lift off its low weighed on AUD/USD

• Drops in gold and silver helped put additional weight on the pair

• AUD/USD's price action has daily charts suggesting the recent rally is near an end

• A daily gravestone doji formed and daily RSI diverged on the earlier high

• A bear pennant continuation pattern is in place on daily charts, reinforces bear signs

• Rising monthly RSI, bull pennant on monthly chart gives bulls some comfort
audusd

(Christopher Romano is a Reuters market analyst. The views expressed are his own)