AUD has been the underperformer across the FX space throughout the European session as risk appetite comes under pressure.
Meanwhile, AUD proxies such as iron ore, copper, CNH and Chinese equities are beginning to rollover, which has further weighed on the currency.

What’s more, seasonal patterns (since 2010) are also set to turn bearish against AUD/USD from April 28th until May 24th.

That said, for Aussie traders, the near-term focus will be on the Q1 CPI print.
With money markets pricing in a 28% probability of a 25bps RBA rate hike in May, a larger reaction in the currency will stem from an upside surprise 0#RBAWATCH.
Although, while this would fuel AUD gains, higher AUD/NZD (equity neutral cross) would likely be a better expression as opposed to against the USD given the aforementioned bearish factors pilling up for the pair.

Additionally, Wednesday will be corporate month-end, which is typically associated with USD buying, therefore, AUD/USD upside could be short-lived, particularly with key hurdles at the 200DMA and 0.6800 continuing to cap rallies.

Related comment:nL1N36R1JZ

For more click on FXBUZ