AUD/USD struggling below 0.75 mark, near three-month lows

The AUD/USD pair continued with its struggle to register any meaningful recovery and remained within striking distance nearly three month lows touched in the previous session.

Currently trading around 0.7490-85 band, testing session lows, spot ran through some fresh offers and once again failed to build on to its tepid recovery move further beyond the 0.7500 handle. Weaker sentiment surrounding commodity space, with copper trading with a loss of around 1.0% for the day, was seen weighing on the commodity-linked currencies. 

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This coupled with the ongoing recovery in the US treasury bond yields, further underpinning the US Dollar demand, also collaborated towards driving flows away from higher-yielding currencies, including the Aussie.

Today's relatively thin US economic docket is unlikely to provide any immediate respite for the major and hence, focus would remain on Thursday's key macro releases featuring Australian jobs report and RBA Financial Stability Review along with Chinese trade balance data.

Technical levels to watch

On a sustained break below multi-month lows support near 0.7475 level, the pair is likely to immediately drop to 0.7425-20 horizontal support en-route the 0.7400 handle. On the flip side, only a sustained move beyond 0.7500-0.7510 immediate hurdle could open room for additional recovery towards 0.7535 level ahead of the very important 200-day SMA hurdle near 0.7555 region.