AUD/USD breaks below 0.75 mark, lowest since June 2017

   •  Persistent USD buying interest keeps exerting downward pressure.
   •  Resurgent US bond yields/Fed rate hike prospects aggravate the downfall.
   •  US ISM PMI eyed ahead of Wednesday’s Chinese manufacturing PMI and the Fed.

The greenback continued scaling higher on Tuesday, pushing the AUD/USD pair momentarily dipped below the key 0.7500 psychological mark.

After Friday's modest recovery attempt, the pair resumed with its rejection slide from the very important 200-day SMA, touched on April 19, and traded with a negative bias for the eighth session in the previous nine. 

The key US Dollar Index surged to near 4-month highs and was seen as one of the key factors weighing heavily on the major. Adding to this, speculations over a steeper Fed monetary policy tightening cycle, reaffirmed by the recent upsurge in the US Treasury bond yields, further dented demand for higher-yielding currencies - like the Aussie.

Meanwhile, weaker trading sentiment around commodity space, especially copper, also did little to revive demand for the commodity-linked Australian Dollar and stall the pair's slide to its lowest level since early June 2017.

On the economic data front, the release of US ISM manufacturing PMI would now be looked upon for some short-term trading impetus ahead of Wednesday's Chinese Caixin Manufacturing PMI and the key FOMC decision. 

Technical outlook

Valeria Bednarik, American Chief Analyst at FXStreet writes: “A break below the 0.7500 will put the pair at its lowest since June 2017, with the next short-term support being a relevant weekly high at 0.7475, but most relevant leaving doors open for a steady decline toward the 0.7250 level.”