AUD/USD slips below 0.76 handle to nearly two-week lows

The AUD/USD pair remained under some selling pressure for the sixth consecutive session and has now broken below the 0.7600 handle to two-week lows near 0.7590 region.

The Trump administration’s inability to push through a key healthcare bill casted doubts over subsequent fiscal policy measures and weighed heavily on the greenback, dragging the key US Dollar Index to its lowest level in over four month on Monday. The pair, however, failed to gain traction despite of a broad based US Dollar sell-off and ended the day in red, below 50-day SMA.

On Tuesday, a tepid greenback recovery, supported by a modest up-tick in the US treasury bond yields, could be attributed to the offered tone surrounding the major. Adding to this, weaker copper prices, which dents demand for commodity-linked currencies - like the Aussie, further collaborated to the pair's downslide to the lowest level since March 15.

Moving ahead, traders would now take clues from the US economic docket, featuring the release of goods trade balance and CB Consumer Confidence index ahead of the FOMC member Robert Kaplan’s speech.

Technical levels to watch

Immediate support is pegged at 0.7570 level, below which the pair is likely to head towards the very important 200-day SMA support near mid-0.7500s en-route its next major support near the key 0.75 psychological mark.

On the upside, 50-day SMA near 0.7625 region now seems to act as immediate hurdle, which if cleared might lift the pair towards 0.7660-65 horizontal resistance ahead of the 0.7700 handle.