• Charts show scope for some downside in AUD/USD, but fundamentally it is difficult to argue for AUD downside.
   
• Rally in iron ore and steel prices, plus by oil’s resilience, argues for an extension of existing AUD speculative longs. 
   
• Domestic data (Q1 CPI due Wed) adds to the case for the RBA to maintain a steady hand. 
   
• Expectations are for 0.4% q/q, 1.9% y/y headline inflation, 0.6% q/q for the average of the RBA core measures, leaving these at 2.0% y/y, the bottom of the band.
   
• That said, daily charts show some weakness. Pair struggling at the 0.77 handle, trades a tight range.
   
• Strong resistance seen around 0.7730 levels, Stcohs and MACD are biased lower. 
   
• Our previous call (http://www.econotimes.com/FxWirePro-AUD-USD-struggles-at-077-handle-good-to-sell-rallies-199724) is progressing. Hold for targets.