AUD/USD halts ongoing recovery trend, faces rejection at 0.7500 handle

Having faced rejection just below 0.7500 psychological mark, the AUD/USD pair reversed early gains to 8-day high and drifted into negative territory. The pair, however, has managed to bounce off session low and is currently trading with only marginally losses around 0.7470 region.

The pair on Tuesday struggled for a firm direction as investors preferred to remain on the sidelines ahead of this week's major event risks ranging from the uncertainty surrounding OPEC output deal and the Italian constitutional referendum on Sunday. Meanwhile, the ongoing corrective slide in commodity markets is weighing on commodity-linked currencies - like the Aussie, while renewed greenback buying interest is also contributing to the softer tone surrounding the major on Tuesday. 

With markets already pricing-in a December Fed rate-hike action, focus now shifts to the central bank's monetary policy stance beyond December meeting. Hence, focus would remain on this week's key US macro releases, starting with the revised Q3 GDP growth and Consumer Confidence index on Tuesday ahead of the keenly watched NFP data on Friday. 

Technical levels to watch

Immediate upside resistance is pegged at 0.750 round figure mark, which if cleared has the potential to lift the pair immediately towards the very important 200-day SMA resistance near 0.7520 region. On the downside, weakness below 0.7450 immediate support is likely to accelerate the slide towards 0.7400 strong horizontal support with 0.7430 level acting as intermediate support.