AUD/USD surges to a fresh 4-day high at 0.7550

Extending its recovery momentum from 100-day SMA support, the AUD/USD pair is seen building on to its move above 0.7525-30 resistance area. 

Currently trading at 4-day high around 0.7550 region, the pair is benefitting from a broadly weaker greenback, which remained on the back-foot following strong gains recorded at the end of last week on the back of sharper-than-expected rise in US consumer prices. 

Moreover, fading hopes for an interest rate hike from the Federal Reserve on Wednesday is seen weighing on the greenback and boosting demand for higher-yielding currencies - like Aussie.

Going forward, minutes from the RBA latest monetary policy meeting would be in focus during early Asian session on Tuesday for immediate impetus, while the pair's near-term trajectory would be dependent on the Fed monetary policy stance. 

Technical levels to watch

A follow through buying interest above 0.7550 level is likely to boost the pair immediately towards 50-day SMA resistance near 0.7580 region above which the pair seems to head back towards making a fresh attempt towards reclaiming 0.7700 handle.

On the flip side, weakness below 0.7510 immediate support is likely to accelerate the slide towards 100-day SMA support near 0.7480-75 region, which if broken seems to drag the pair back towards 0.7450-45 support area.