AUD/USD inching closer to multi-month tops

As the US Dollar Index extends its fall during the early NA session to a new low since Feb. 2 at 99.55, the AUD/USD is gaining momentum and approaching multi-month high of 0.7748, which was refreshed on Monday. At the time of writing, the pair is up 0.13% at 0.7742.

Despite an optimistic view of commodity price expectations, minutes of the RBA board's March meeting, released on Tuesday during the Asian session, highlighted "a build-up of risks associated with the housing market," putting pressure on the AUD. "The recent improvement in global demand suggested that higher commodity prices could be more persistent than previously anticipated," the RBA added. The negative impact of the minutes couldn't last long as the DXY movements have been the main driver for the AUD/USD movements.

Strong macro data from the United States couldn't help the greenback limit its losses, and the participants will look for fresh catalyst in the Kansas Fed President Esther George and Cleveland Fed's Loretta Mester statements'.

• US: The current-account deficit decreased to 2.4% of GDP
• US: Philly Fed non-manufacturing activity index advanced to 35.4 from 29.3

Technical levels

The first technical resistance above 0.7748 (yesterday's high) is located at 0.7775 (Nov. 8 high) followed by 0.7800 (psychological level). On the downside, a breach of 0.7662(Mar. 16 low), could target 0.7630 (50-DMA) and finally 0.7555 (Mar. 15 low).