Drops Below 0.76

A move higher in the greenback saw AUD/USD pressured, the pair lost ground during the European/US sessions and dropped below the 0.76 handle, the pair last flat at 0.7596.

• CBA notes that weaker oil also put downside pressure on AUD: "Oil prices fell ahead of tomorrow's OPEC+ meeting. Nonetheless, OPEC+ is expected to maintain the current low level of output for May which will again underpin crude oil prices. In our view, Brent risks finishing the year above US$70/bbl on OPEC+ supply discipline and stronger demand, supporting AUD."
• There could be tailwinds for AUD though in the shape of month and quarter end portfolio rebalancing. Other tailwinds include a continued rise in Australian yields, 10-year yield last at 1.773%.
• From a technical perspective AUD/USD maintains a bearish tone following last week's sell-off. The move lower last week resulted in a break of support 0.7621, Mar 9 low and a bear trigger. This confirmed a resumption of the bearish cycle that started at 0.8007, Feb 25 high and paves the way for weakness below 0.7564, Feb 2 low. On the upside, key resistance has been established at 0.7849, Mar 18 high. Overall, bearish.
• The data highlights today are private sector credit and building approvals figures at 0130BST/1130AEDT, the market will also have an eye on China's PMI figures at 0200BST/1200AEDT.