AUD/USD flirting with lows at 0.7600 handle

The AUD/USD pair came under fresh selling pressure during early US trading session and dipped below 0.7600 handle amid renewed broad based US Dollar strength.

The pair's latest leg of downslide was primarily driven by drop in weekly jobless claims and better-than-expected pending home sales data, which negated a slight disappointment from durable goods orders, albeit core durable goods orders matched market expectations. 

Thursday's economic data extended additional support to the prevalent bullish sentiment surrounding the US Dollar led by increasing bets of an imminent Fed action in December. 

Focus now shifts to Friday's second-tier economic releases from Australia ahead of key US GDP print later during NA session, which would provide fresh impetus for the pair's next leg of directional move.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet, notes, "although the pair is at risk of another leg south in the short term, as in the 1 hour chart, the 20 SMA has crossed below the 200 EMA with a sharp bearish slope above the current level, while technical indicators hold well below their mid-lines, although with limited directional strength. In the 4 hours chart, technical indicators entered bearish territory with sharp downward slopes, whilst the price is also below its 20 SMA that lost its upward strength, in line with the shorter term outlook."

"Support levels: 0.7600 0.7560 0.7520
Resistance levels: 0.7640 0.7685 0.7720"