AUD/USD pauses near one-month high, dips to 0.7635

The AUD/USD pair failed to build on to its Monday's gains and faded its initial bullish spike to 0.7665 to currently trade around 0.7635 region. 

The pair shrugged-off weaker Chinese CPI data that fueled speculation of further easing by PBOC and dropped to a session low of 0.7620. 

On Monday, the pair gained traction despite of a broadly stronger greenback on the back of Friday's strong non-farm payrolls data and disappointing Chinese exports data.

This week's Chinese economic data will remain in focus for determining the pair's near-term trajectory. Being Australia's largest trading partner, Chinese economic data has a lasting effect on the AUD/USD major.

From technical perspective, the pair now seems to face strong resistance near July monthly highs around 0.7675 region. Hence, a subsequent drop below 0.7600 round figure mark might now open room for a near-term corrective move. However, a decisive move above 0.7675 would confirm continuation of the pair's near-term upward trajectory.

Technical levels to watch

On the downside, 0.7600 round figure mark remains immediate support to watch for, which if broken decisively seems to drag the pair immediately towards 0.7535-30 intermediate support before the pair heads back towards retesting 100-day SMA support near 0.7500-0.7485 region.

Meanwhile on the upside, 0.7670-75 region remains immediate strong resistance, above which the pair seems all set to extend its bullish momentum initially towards 0.7720 (May 3 high) and eventually towards 0.7765 (April 27 high).