The spike high to 0.9724 has attracted sellers who are expecting the RBA to cut rates .
More offers at 0.9750 and around the May 31 at 0.9771. An option expiry due in about an hour at 0.9700 could also keep the pair in check.
The RBA decision later today (Tues morning in Australia) is one of the closest calls you will ever see but the most-recent trend is to price in a higher chance of a cut. The probability has moved to 63% compared to 51% when the market opened for the week.
Treasurer Wayne Swan opened the door for a cut in his comments overnight.