AUD/USD clings to recovery gains beyond 0.7600 handle

The AUD/USD pair extended Friday's recovery from 100-day SMA and is now building on to its momentum beyond 0.7600 handle.

Currently trading near session peak around 0.7615-20 band, the pair caught fresh bids, despite of drop in Melbourne Institute's monthly inflation expectations, and reversed early weakness to daily lows near 0.7580 region. The up-move, however, remained tepid amid broad based greenback recovery following Friday's sharp slide on news of FBI probe on Clinton's email.

Later during NA session, US economic docket would be looked upon for short-term momentum play ahead of Chinese manufacturing PMI and RBA monetary policy decision during early Asian session on Tuesday. Being Australia's largest trading partner and largest consumer of commodities, Chinese manufacturing data has a lasting impact on commodity-linked currencies - like Aussie. Moreover, Tuesday's RBA monetary policy decision and accompanying rate-statement would further assist investors to determine the pair's trajectory in the near-term. 

Technical levels to watch

From current levels, 0.7640 level is likely to act as immediate hurdle above which the pair could make a fresh attempt to move back above 0.7700 handle. On the downside, 0.7585 level is likely to act as immedaite support, which if broken is likely to drag the pair back towards Friday's swing low support near 100-day SMA around 0.7560-55 region.