AUD/USD erases daily losses

AUD/USD is challenging daily highs at the beginning of the New York session, having recovered the lost ground on the back of softer-than-expected Aus inflation data.

AUD/USD fell to the 0.7315 area during the Asian trade, but managed to reverse intraday losses, climbing back to the 0.7365/70 zone in recent dealings. At time of writing, the pair is trading at 0.7366, virtually unchanged on the day.

The Reserve Bank of Australia will decide on monetary policy on Tuesday, with some analysts calling for a rate cut. However, ahead of the RBA, main focus will be on Fed Chair Yellen speech, for insights over the upcoming meeting on June 14-15, especially in the light of much-weaker-than-expected US jobs data.

AUD/USD levels to watch

As for technical levels, next resistances could be found at 0.7400/01 (psychological level/May 11 high), 0.7477 (50-day SMA/May 6 high) and then 0.7516 (May 4 high). On the other hand, supports are seen at 0.7255 (200-day SMA), 0.7200 (Jun 2 low/psychological level), 0.7180 (May 31 low) and  0.7148/44  (May 30 & 24 lows).