AUD/USD remains stuck in tight range near 0.6900

• Market action turns subdued on Wednesday amid a lack of significant drivers.
• US Dollar Index consolidates gains following the two-day rally.
• Coming up on Thursday: Trade balance data from Australia.

The AUD/USD pair seems to be having a difficult time determining its next short-term direction since the start of the week as the renewed US-China trade optimism allows antipodeans to stay resilient against the greenback. As of writing, the pair was trading at 0.6900, adding only 0.08% on the day.

Reports this week suggested that the US and China were close to the completion of the phase-one of the trade deal to ease concerns over a protracted trade conflict and its potential negative impact on the Australian economy.

On the other hand, Tuesday's data from the US revealed that the economic activity in the non-manufacturing sector expanded at a more robust pace in October than it did in September and provided a boost to the buck.

USD goes into a consolidation phase on Wednesday 

Meanwhile, the US Labor Department on Wednesday announced that Unit Labor Costs in the third quarter increased 3.6% to beat the market expectation of 2.2%. Nevertheless, the US Dollar Index, which climbed to a multi-week high above the 98 mark on Tuesday, is consolidating its two-day rally and was last down 0.1% on the day at 97.80.

In the early trading hours of the Asian session, the trade balance data from Australia will be looked upon for fresh impetus. Later this week, the trade balance data from China on Friday could also affect the AUD's market valuation.

Technical levels to consider