AUD/USD struggling to gain traction, hovering around 50-DMA

The AUD/USD pair managed to recover early lost ground to session low near 0.7615 and touched a fresh session top near mid-0.7600s.

The ongoing slump in the US treasury bond yields, against the backdrop Trump administration failure to push through legislation to replace Obamacare, was seen weighing heavily on the US Dollar and driving flows towards higher-yielding currencies - like the Aussie. 

However, the prevalent bearish sentiment in the commodity space, especially copper, has failed to provide any additional boost to the commodity-linked currencies and assist the pair to build on to its recovery momentum. Nevertheless, the pair continues to hold above the 50-day SMA. 

Hence, only a decisive break below this immediate support, leading to a subsequent weakness below the 0.7600 handle, would confirm a near-term break-down and turn the pair vulnerable to extend its near-term corrective slide from over 4-month highs touched last week. 

With an empty US economic docket, focus would remain on a scheduled speech by the Chicago Fed President Charles Evans for some fresh impetus later during the NY session.

Technical outlook

Bearish slide below the 0.7600 handle could get extended towards 0.7585 support en-route the very important 200-day SMA support near mid-0.7500s.

On the upside, sustained recovery above mid-0.7600s is likely to accelerate the up-move towards 0.7675-80 hurdle before the pair eventually aims to reclaim the 0.7700 handle and head towards testing 0.7710-15 strong resistance.