Australian Dollar/US Dollar AUD/USD Fails to capitalize on early rally and remains capped below mid-0.6700.
The bulls seemed unaffected by the prevailing risk-taking mood and declining demand for the dollar.
The focus now shifts to the latest RBA monetary policy meeting minutes, scheduled for Tuesday.
AUD/US dollar depreciated AUD/USD back to the lower end of its daily trading range, albeit still able to hold a neck above the 0.6700 . mark.
The proxy Australian dollar failed to benefit from an early positive attempt against its US counterpart and remained capped below last week's high at 0.6750.
Traders preferred to stay on the sidelines
Investors looked forward to the latest monetary stimulus from the People's Bank of China, which increased its broad measures and lowered the medium-term funding rate to a new record..
The pair also failed to benefit from an improvement in global risk sentiment, which tends to drive inflows into riskier currencies such as the Australian dollar, and waning demand for the US dollar..
Market participants seemed reluctant to place any aggressive bets, preferring to wait on the sidelines amid relatively thin liquidity conditions on the back of the US bank holiday..
With no new fundamental catalyst in place, the pair looks likely to extend its consolidating price action ahead of Tuesday's latest RBA monetary policy meeting minutes..