AUD/USD struggles to reach 0.76

The AUD/USD pair has been moving sideways in a confined range just a few pips below the daily high as the Easter holiday keeps the volume low. At the moment, the pair is up 0.2% at 0.7592. 

The pair had a positive start to the day amid a weak greenback. The US Dollar Index inched lower from 100.50 to 100.10 early in the European morning as the markets gave a delayed reaction to Friday's weak inflation and retail sales figures. Although the index was able to recover from there, it couldn't gather momentum to push above 100.30 and came under a renewed pressure. As we approach the beginning of the NA session, the index is back around 100.10. 

Earlier in the day, the upbeat Chinese macro data also helped the pair hold on to its initial gains as the industrial production and retail sales came in above expectations. Macro data to be released in the NA session are not expected to receive any significant market reactions. The RBA minutes due in the Asian session could be the next catalyst for the pair. For the remainder of the day, the US Dollar Index could drive the price action of the AUD/USD.

• China data dump solid: Q1 GDP betters expectations
• RBA’s Harper: RBA is focused on inflation

Technical outlook

The pair could face the immediate hurdle at 0.7600 (psychological level) before 0.7680 (Mar. 30 high) and 0.7750 (Mar. 21 high). On the downside, supports are located at 0.7550/45 (200-DMA/100-DMA), 0.7500 (psychological level) and finally 0.7470 (Apr. 12 low).