AUD/USD on the verge of breaking through 0.7500 handle
|The AUD/USD pair ran through fresh offers at session peak level of 0.7533, erasing all of its tepid recovery gains to turn lower and is now inching closer to break through 100-day SMA support near 0.7500 psychological mark.
The greenback continues to gain traction as markets now seemed convinced that the Fed would go ahead and raise interest-rates, sooner rather than later, depending on the incoming US economic data and is weighing on high-yielding currencies – like the Aussie. Hence, Friday's release of NFP data becomes the key determinant for the central bank’s monetary policy stance.
Ahead of the official release, ADP report on US private sector employment will be keenly scrutinize, which if surpasses expectations of 171k would exert further selling pressure surrounding the AUD/USD major. Wednesday's US economic calendar also features the release of Chicago PMI and pending home sales data that could provide some impetus for short-term traders.
Technical levels to watch
On a sustained weakness below 100-day SMA support near 0.7500 region, the pair is likely to accelerate the slide immediately towards 0.7465-60 support before extending the near-term corrective move even below 0.7400 handle, towards testing the very important 200-day SMA support near 0.7380-75 region.
Meanwhile on the upside, recovery momentum above session high resistance near 0.7535 level is likely to boost the pair towards weekly high resistance near 0.7575-80 zone above which the pair seems to extend the upward trajectory back towards 0.7625-30 horizontal resistance.
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