AUD/USD looks to retest 100-DMA support amid cautious mood

• AUD/USD’s rebound falters on Monday, as risk-aversion seeps in.
• 100-DMA is likely at risk once again after rejection above 0.7400.
• Bearish RSI favors the bears while 21-DMA offers stiff resistance.

AUD/USD has reversed the early bids while trading almost unchanged on the day just below 0.7400, as the bears return on Monday amid risk-aversion.

Growing concerns over rising inflation and its impact on the global economic recovery weigh on the investors’ sentiment, as major central banks, including the Reserve Bank of Australia (RBA), refrained from making a move on the interest rates in the previous week.

Additionally, the renewed uptick in the US Treasury yields is adding to the weakness in the aussie, with all eyes now turning towards Fed Chair Jerome Powell’s speech, US CPI data and the Australian jobs report due on the cards later this week.

Looking at AUD/USD’s daily chart, the major is looking to retest the critical 100-Daily Moving Average (DMA) support at 0.7379, having failed to find acceptance above the 0.7400 level for the second straight session.

The horizontal 50-DMA at 0.7367 will be next strong support, below which the sellers will look for fresh entries, which could drag the rates towards the 0.7300 threshold.

The 14-Day Relative Strength Index (RSI) is trading listlessly but still below the midline, suggesting that there is more room for the downside.

AUD/USD: Daily chart

On the flip side, the aussie bulls will challenge the upward-pointing 21-DMA at 0.7448 should the 100-DMA hold the fort yet again.

Further up, a rally towards Thursday’s high of 0.7471 cannot be ruled out. The next relevant upside barrier for the pair is placed at the 0.7500 round figure.

AUD/USD: Additional levels to consider