AUD/USD kicks off the new week looking to extend a bullish correction

• Partial holiday in Australia with Western Aus off for Labour Day; expect thinned out participation.
• Little on the docket for Australia puts extra focus on China trade figures dropping early Tuesday.

The AUD/USD pair starts another week near 0.7340, and Monday is going to shape up into a quiet session for the Aussie.

Western Australia is off for Monday in observance of Labour Day, so volumes will be restrained for the AUD; Tuesday will bring Trade Balance figures for China which could produce some knock-on volatility for the AUD/USD, but this week is a quiet showing for the Aussie across the board.

April turned into a bad month for the AUD as the US Dollar rebounded across the broader FX market and the AUD finds itself down 3.5% from April's high and down over 7% on the year. Traders will be looking for a correction back up to the 50.0 Fibo level of 0.7640 before selling further. With the Australian economy continuing to slow down and miss key growth expectations, the Reserve Bank of Australia (RBA) has been hobbled on interest rates, and the growing rate differential between the Aussie and the Greenback is expected to widen, with the RBA expected to remain flat on rates until sometime in 2019.

AUD/USD Levels to watch

FXStreet's Chief Analyst Valeria Bednarik with her take on the AUD/USD's technical outlook: "technically, the latest recovery has been capped by selling interest around the 23.6% retracement of the latest daily slump at around 0.7550, the level to surpass to confirm further recoveries ahead. Daily basis, however, the pair retains its bearish stance as it's developing well below a bearish 20 SMA, which converges with the 50% retracement of the mentioned slump, while technical indicators barely corrected extreme oversold readings before losing upward strength."

Support levels: 0.7500 0.7470 0.7430

Resistance levels: 0.7550 0.7590 0.7620