The dollar lags to kick start the session

The greenback is marked lower across the board as we get things underway in Europe, with little clear catalysts across the market for the time being.

Major currencies are stretching their legs on the day, extending from the narrower ranges earlier with US futures a touch higher and Treasury yields likewise as well. 10-year yields are up 3 bps to 1.568% currently.

The aussie is leading gains with AUD/USD testing 0.7740 but price action remains largely trapped in between its key hourly moving averages @ 0.7722-45 for now:

That said, buyers are holding on to the week's lows around 0.7700 with the 50.0 retracement level also seen offering support against any downside pressure this week.

As such, that will be the key line in the sand in gauging any further downside momentum in the pair while buyers still have work to do to try and chase more upside potential.

The first test for buyers will be the 100-hour moving average (red line) @ 0.7745 before the swing region at 0.7760 and the 0.7800 handle.

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