Becky Morgan, Soo-Yun Kang and Sherri Steinhauer share fourth place at 4-under-par 67.
Cavalleri played the back side first at Wykagyl Country Club and stumbled out of the gate with a bogey at the 10th, her first.
The 31-year-old quickly shook off the early mistake, however, and knocked her tee shot inside 12 feet for a birdie at the par-3 13th. Cavalleri followed with a birdie at the 15th and hit a wedge to six feet for a birdie at the par-5 18th.
Cavalleri continued her fine play on the front side and made it two in a row with a birdie at the first. She added a birdie at the third and dropped a 7-iron inside 12 feet at the par-4 fifth to begin another stretch of birdies.
The 1997 U.S. Women's Amateur champion birdied the sixth to reach 6 under but found trouble with a bogey at the very next hole to fall back into a share of the lead after the first round.
'I made all of the putts except for the save on the par-3, No. 7,' said the Italian. 'I've been playing pretty good, solidly, but I have never made the putts that counted, that I needed to make.'
Yang got off on the wrong foot as well with a bogey at the second. She responded with birdies at the fifth and the seventh and ran home a 10-foot putt for a birdie at the 10th.
She added back-to-back birdies from the 13th and closed out her round with a birdie at the par-4 17th after her approach stopped within a few feet of the hole.
'I putted great,' said Yang. 'I think I had like seven or eight one putts on the back nine.'
Taylor also credited her putting in the opening round.
'Honestly I didn't hit it well,' she said. 'I didn't time my shots well today, but I holed a lot of putts.'
The 25-year-old tallied a birdie and a bogey on the front nine but caught fire with five birdies on the inward half for her share of the early lead.
Amy Hung finished two shots off the pace after a round of 68.
Grace Park, Rachel Teske, Candy Hannemann, Michele Redman and Chiharu Yamaguchi were one shot further back at 2-under-par 69.
Hee-Won Han, who won for the first time on the LPGA Tour at this event last year, had a rough opening round of 76.