AUD/USD hits fresh two-month high and retreats

After an initial dip below 0.75 mark, the AUD/USD pair regained traction and spiked to fresh two-month high, reversing previous session's corrective slide. 

Currently trading around 0.7555-60 region, the pair accelerated its recovery move amid some renewed US Dollar selling pressure across the board. Moreover, possibilities of short-term stops getting triggered on a sustained move back above 50-hourly SMA resistance near 0.7540 region could have also collaborated to the pair's sharp spike in the past couple of hours.

Meanwhile, traders also seemed to readjust their positions ahead of ECB monetary policy decision, which might trigger fresh bout volatility in the FX market and provide some fresh impetus for the major.

The pair, however, quickly retreated from multi-week highs on the back of a sharp fall in Copper prices, which tends to weigh on commodity-linked currencies - like the Aussie. 

Later during NA session, US economic docket would assist traders to grab some short-term trading opportunities ahead of the Fed Chair Janet Yellen's appearance and a slew of important Chinese macro data, during early Asian session on Friday. Being Australia's largest trading partner, Chinese economic data has a lasting effect on the Australian Dollar and hence, would help investors to determine the next leg of directional move for the major. 

Technical levels to watch

On a sustained move above 0.7570 region, the momentum is likely to get extended towards 0.7600 handle above which the pair all set to head towards its next major resistance near 0.7645-50 region.

On the flip side, 0.7540 level now seems to act as immediate support, which if broken is likely to drag the pair back towards 0.7500 psychological mark, en-route its next support near 0.7470 region.