AUD/USD attempting to build on yesterday's recovery move

Having posted a session low at 0.7240 level, the AUD/USD pair gained some traction and is now building on Tuesday's recovery move.

Currently trading around 0.7265-70 band, the US Dollar extended its profit taking slide during early NA session, as investors continue to lock-in some profits from recent gains, and has been the sole driver for the pair's recovery move on Wednesday. In fact, the US Dollar Index has now corrected below 103.00 handle ahead of US data, due just a short while from now.

Today's US economic docket features the release of existing home sales data, which would be looked upon to grab some short-term trading opportunities. Investors, however, will remain focused on Thursday's key US macro data, which if adds to the Fed's hawkish economic outlook would lend further support to the prevalent strong bullish sentiment surrounding the greenback.

Technical levels to watch

From current levels, 0.7280 level is likely to act as immediate resistance above which the pair seems all set to reclaim 0.7300 handle and head towards its next resistance near 0.7325-30 region. On the downside, 0.7240 level now becomes immediate support to defend, which if broken has the potential to drag the pair below 0.7220 (yesterday's low), and 0.7200 round figure mark, towards its next major support near 0.7150-45 horizontal zone.