After an initial dip below 0.7600 handle, the AUD/USD pair managed to rebound from 50-day SMA support and has now recovered majority of its lost ground.
Currently trading around 0.7620-25 band, the pair maintained it’s offered tone and remained in negative territory for the entire day. The pair failed to benefit from in-line with expected release of Chinese manufacturing PMI data amid Deutsche Bank crisis-led prevalent risk-off market sentiment, which tends to dent demand for higher-yielding currencies - like Aussie.
Focus now shifts to US economic releases that include - Core PCE Price Index, Personal income / spending data, Chicago PMI and Revised UoM Consumer Sentiment, which would be looked upon to grab some short-term trading opportunities.
Technical levels to watch
On the downside, 50-day SMA near 0.7600-0.7595 region remains immediate strong support to defend, which if broken is likely to accelerate the slide immediately towards 0.7570 horizontal support and increase the pair's vulnerability to head towards 100-day SMA support near 0.7500 psychological mark in the near-term.
Meanwhile on the upside, recovery momentum above session peak resistance near 0.7635-40 region could get extended towards 0.7660-65 resistance and further towards its next major hurdle near 0.7690-0.7700 handle.
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