AUD/USD extends recovery momentum further beyond 0.7600 handle

Having posted a session low at 0.7591, the AUD/USD pair managed to recover all of its lost ground and is now extending its recovery momentum further beyond 0.7600 handle.

Currently trading at a fresh session high level near 0.7635, a minor greenback retracement, from multi-month highs, has been a key driver of the pair's bounce from session low. The pair has now erased Friday's loss recorded in the aftermath of disappointing Australian jobs report released on Thursday. Last week's Australian jobs data reaffirmed RBA's concerns of weaker labor market conditions and lower inflation. Hence, this week's release of Australian quarterly CPI print for Q3 would be the next key fundamental determinant of the pair's next leg of directional move. Lower-than-expected CPI print would increase possibilities of further monetary easing by RBA and should attract fresh selling pressure around the major.

In the meantime, broader sentiment surrounding the greenback, led by investors' expectations of an eventual Fed rate-hike decision by the end of this year, would continue to drive the pair on the first day of a fresh trading week. Investors on Monday will closely scrutinize comments from Federal Reserve Bank of New York President William Dudley and Federal Reserve Bank of St. Louis President James Bullard in order to determine probability and timing of next Fed rate-hike action and thus, should provide some impetus during early NA session.

Technical levels to watch

Immediate resistance on the upside is pegged near 0.7650 level, which is closely followed by resistance near 0.7665 area and 0.7685 region. On the downside, weakness back below 0.7620 support is likely to drag the pair back below 0.7600 handle and session low support near 0.7590 zone towards testing its next support near 0.7580 region.