A fresh bout of US Dollar buying interest seems to have emerged during early European session, with the AUD/USD pair erasing all of its tepid recovery bounce to 0.7580 and drop to a hit a fresh session low level of 0.7555.
The pair shrugged-off better-than-expected Australian building approvals data that showed approvals jumped by 11.3% marking the largest percentage increase rise since September 2013 and has now moved back below 50-day SMA.
Data released on Monday from the US, core PCE price index, reinforced expectations of an eventual Fed rate-hike by the end of 2016. However, the release of US monthly employment details for the month of August would be key determinant of such an action in September and hence, would be the next major fundamental trigger for the pair's near-term trajectory.
Meanwhile, today's release of consumer confidence data from the US, later during US trading session, would be looked upon to grab short-term trading opportunity.
Technical levels to watch
On a sustained weakness back below 0.7550 level should drag the pair back towards 0.7525-20 support (Monday's low) before heading towards 0.7500 psychological mark support. A follow through selling pressure below 0.7500 region, also coinciding with 100-day SMA, is likely to turn the pair vulnerable to extend its near-term corrective move and head towards testing the very important 200-day SMA support near 0.7380-75 region.
Conversely, momentum above session high resistance near 0.7580 is likely to get extended towards 0.7600-0.7610 horizontal resistance, above which the pair seems all set to extend its upward trajectory back towards 0.7685-90 strong resistance (nearing 0.7700 round figure mark).
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