AUD/USD struggling to decisively break through 100-DMA hurdle

The AUD/USD pair built on previous session's up-move but continued with its struggle to attract any strong follow through buying interest beyond 100-day SMA hurdle. 

Spot spiked back closer to multi-week tops following the release of NAB Business Confidence index, which although dropped to 7 in May, from last month's reading of 13, but still pointed to upbeat view on the business conditions and hence, provided an additional boost to the Australian Dollar.

   •  Australia: Business conditions remain elevated - NAB

Adding to this, a mildly positive sentiment around commodity space, especially copper, remained supportive of the bid tone surrounding the major for the second consecutive session. The up-move, however, seemed lacking strong momentum amid subdued US Dollar price-action as investors preferred to hold back ahead of the much awaited FOMC decision. 

The Fed is widely expected to raise interest rate on Wednesday and the accompanying statement would be scrutinized to gain fresh insight over the central bank's near-term monetary policy outlook, which would eventually drive the US treasury bond yields and eventually provide some fresh impetus for higher-yielding currencies - like the Aussie.

In the meantime, today's US economic docket, featuring the release of latest PPI print, would be looked upon to grab some short-term trading opportunities during early NA session.

Technical levels to watch

A strong follow through buying interest beyond multi-week highs resistance near 0.7565 level is likely to accelerate the up-move towards 0.7585-90 resistance en-route 0.7610 level (April 17 high). On the flip side, retracement back below 0.7545 level, leading to a subsequent break below 0.7525-20 support, would turn the pair vulnerable to break below the key 0.75 psychological mark and head towards testing 0.7475-65 support area.