AUD/USD bulls tiring at resistance at 0.7360

Just when markets thought it was game-over for the Aussie after the RBA cut its inflation forecasts and interest rates to record lows, the bulls have been bouncing back with a double bottom serving its purpose at the lows of circa 0.7150 in a risk-on environment. 

The initial bid and correction came when Stevens signalled there would be a long pause in any additional action from the Central Bank. More recently, Australia's GDP Q1 beat expectations further dampening rate cut expectations.

U.S. nonfarm payrolls shocker reviewed - Westpac

The U.S. dollar is now on the back foot as well while June and July hike expectations from the Fed are removed/reduced due to the shocking nonfarm payrolls data released on Friday. The Aussie flew through the GDP highs of just below the 0.73 handle and scored a high of 0.7367.

Risk events ahead come with Fed's Yellen tonight and the RBA tomorrow, widely expected to hold. Thursday has Chinese CPI. 

AUD/USD levels

Having rallied through the 23.6% retracement at 0.7308 in a continuation of this near-term reversal taking place, the next key resistance to beat is at the highs of this post US jobs report rally at 0.7360 for a subsequent rally towards the 0.7430 zone and 4th May consolidation zone. 

"Beyond a corrective rebound, we favour losses to the 78.6% retracement at 0.7044," explained analysts at Commerzbank. "This remains the last defense for the 0.6828 January low. "Near term rallies are expected to remain contained by 0.7410/30, the 38.2% retracement."