AUD/USD Turns Flat, Consolidating Around 100-DMA
The AUD/USD pair erased majority of early Asian session losses to 0.7315 level and turned flat as the greenback seems to add on to its Friday's sharp downfall.
The pair seems to consolidate on Monday after Friday’s sharp upsurge, led by disappointing NFP print, beyond 200-day SMA resistance to test 100-day SMA resistance near 07365. On Monday, the pair initially weakened to 0.7315 after Melbourne Institute's inflation gauge for May fell back below 0.0% after dipping into inflationary territory earlier in Feb.
Moreover, traders also seem to have turned cautious ahead of Tuesday's RBA monetary policy meeting on Tuesday. Although the central bank is not expected to announce any policy action but market participants would like to take fresh directional view post the important event risk.
From the US, traders will take cues from the Fed Chair Janet Yellen's speech later during NY session.
Technical levels to watch
Momentum above 100-day SMA immediate resistance, near 0.7365-70 region, is likely to get extended towards 0.7400 handle, which if conquered would set the stage for a strong appreciating move back above 0.7450 resistance, towards 0.7485 resistance area. Meanwhile on the downside, 0.7320-15 now seems to have emerged as immediate support, below which the pair might extend its slide back towards the very important 200-day SMA near 0.7255-50 region.
