AUD/USD retreats from multi-day tops, rejected near 200-DMA

   •  Softer Aussie data fails to assist build on the early uptick.
   •  Neutral RBA decision went passes unnoticed.
   •  A modest USD rebound prompts some fresh selling.

The AUD/USD pair surrendered a major part of its Asian session up-move and retreated around 20-25 pips from 4-day tops. 

The pair initially caught some strong bids and attempted a move back above the very important 200-day SMA, despite softer Aussie retail sales and current account data. A mildly softer tone around the US Dollar helped offset disappointing domestic data and provided a minor boost during the Asian session on Tuesday.

Meanwhile, the pair had a rather muted reaction to the latest RBA monetary policy decision, wherein the central bank left its key benchmark interest rates unchanged at a record low and offered little hawkish or dovish surprise. 

In absence of any supportive factors, the up-move quickly ran out of steam, with a modest USD uptick turning out to be one of the key factors behind the pair’s latest leg of the fall. Even the prevalent bullish commodity prices also did little to revive demand for the commodity-linked Australian Dolla and stall the pair's retracement back to the 0.7770 level. 

There aren’t any major market-moving economic releases due on Tuesday and hence, the pair remains at the mercy of USD price dynamics, which would now take cues from Friday’s keenly watched US monthly jobs report (NFP). 

Technical levels to watch

Immediate support is pegged near mid-0.7700s, which if broken could accelerate the fall back towards 0.7725 intermediate support en-route the 0.7700 handle. On the upside, the 0.7785 region (200-DMA) might continue to act as an immediate hurdle, above which the pair is likely to dart towards testing its next barrier near the 0.7815-20 region (100-DMA).