AUD/USD erases gains ahead of US data

The AUD/USD pair gave back its daily earnings ahead of the NA session opening and is moving closer to 0.75 handle. Having topped the day at 0.7540, the pair is now trading at 0.7524, down 0.07% on the day.

The greenback's recent strength is seen as the main reason for this mentioned drop. On Friday, the US Dollar Index was able to extend its correction move that started in the second half of the week. After coming under a heavy selling pressure on Monday and Tuesday, the index has been trying hard to reach the critical 100 level. At the moment, the index is up 0.13, at 99.84.

Investors now turned their attention to the US economic docket for fresh catalysts. Minneapolis Fed President Neel Kashkari's speech will be followed by Markit's PMI readings for the manufacturing and the service sector. Expectations point to a dismal expansion activity in both sectors.

Technical outlook

A break below 0.7500 (psychological level) could allow the pair to drop further towards 0.7470 (Apr. 12 low) and 0.7400 (psychological level). To the upside, resistances could be seen at 0.7550/55 (200-DMA/100-DMA), 0.7600 (50-DMA) and 0.7680 (Mar. 30 high).