AUD/USD turns back above 0.7600 handle

Despite of slightly weaker-than-expected Chinese trade balance data, the AUD/USD pair erased all of its losses and has now moved back above 0.7600 to currently trade near session high. 

A fresh wave of US Dollar selling seems to have emerged that assisted the pair to recover from session low level of 0.7578. Earlier during the day, the pair struggled to sustain its strength above 0.7600 handle as investors remain concerned over Chinese economic slowdown ahead of Friday quarterly GDP data.

Meanwhile, any further up-move could be limited on the back of uncertainty surrounding this week's key event risk, BOE monetary policy decision on Thursday. Markets seem to price-in a possible rate-cut, which if undelivered could shake the broadly upbeat global risk sentiment.

Next in focus would be BOC rate statement and quarterly monetary policy report, which although is not relevant, could trigger some sentimental momentum play for short-term traders. 

Technical levels to watch

On the immediate upside, two-month high near 0.7650-60 area remains immediate hurdle to clear, above which the pair seems all set to reclaim 0.7700 handle and dart towards its next major resistance near 0.7745-50 region.

On the downside, sustained weakness below 0.7560-50 immediate support has the potential to drag the pair back below 0.7500 psychological mark, towards testing 100-day SMA near 0.7470-65 region.