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AUD/USD chart - Trading View
AUD/USD has edged lower from session highs at 0.6552 and was trading largely muted at 0.6519 at around 03:55 GMT.
The pair closed 1.73% higher in the previous session, above 110-EMA resistance, raising scope for further gains.
Aussie struggling to extend Monday's rally, escalating tensions between China and Australia keep traders wary.
Further, RBA's May meeting minutes offer no surprises, Aussie showed little change. The minutes showed policymakers are on a wait-and-watch mode.
Deteriorating market mood amid US President Trump's threat to permanently freeze WHO funding over China's coronavirus inquiry also dents upside.
Technical analysis shows the pair could extend upside. Price action has bounced off 21-EMA and channel base support.
Scope for test of 200-DMA at 0.6661. Failure to hold above 110-EMA and retrace below 21-EMA negates bullish bias.
