AUD/USD struggles near multi-month lows, focus shifts to RBA decision

   •  USD manages to preserve daily gains despite mixed economic data.
   •  Repositioning trade likely to influence price-action ahead of RBA.

The AUD/USD pair maintained it’s heavily offered and is currently placed just a few pips away from 4-1/2 month lows touched on Friday.

With markets reacting little to today's mixed Chinese PMIs, resurgent greenback demand was seen as one of the key factors prompting some aggressive selling around the major. Despite disappointing Chicago PMI print, the key US Dollar Index spiked back closer to multi-month tops and kept exerting pressure through the early NA session. 

Meanwhile, traders seems to have largely ignored a subdued action around the US Treasury bond yields, which tends to benefit the higher-yielding currency, with a modest uptick in copper prices also doing little to lend any support to the commodity-linked Australian Dollar. 

It would now be interesting to see if the pair is able to find any buying interest at lower level as traders now start repositioning for the upcoming RBA monetary policy decision, due to be announced during the early Asian session on Tuesday.

Technical levels to watch

Any meaningful recovery attempt beyond 0.7560-65 area might continue to confront some fresh supply ahead of the 0.7600 handle, above which a bout of short-covering could lift the pair further towards 0.7645-50 resistance. 

On the flip side, the 0.7535-30 region might continue to act as an immediate support, which if broken should now drag the pair towards challenging the key 0.7500 psychological mark.