AUD/USD holding its neck above 0.7400 mark around 100-DMA

Global risk-off sentiment is seen supporting the greenback and denting demand for commodity-linked currencies - like the Aussie, with the AUD/USD pair now trading back below 100-day SMA.

The pair on Friday fell sharply, but managed to recovery from 200-day SMA support and hold on to the 100-day SMA support on daily closing basis. However, with risk-aversion again setting in during the start of a fresh trading week, the pair dipped back below 100-day SMA before retracing back above 0.7400 handle. 

Meanwhile, devaluation of the Chinese Yuan is also hurting demand for the Australian Dollar while a tepid bounce is global equity markets is seen restricting immediate sharp downslide for the AUD/USD pair.

Technical levels to watch

Sustained weakness below 0.7400 handle and a subsequent break through session low support near 0.7385 now seems to find immediate support around 0.7350 level before the pair heads back towards the very important 200-day SMA support near 0.7300-0.7280 region.

Conversely, momentum back above 0.7420-0.7430 (100-day SMA region) is likely to lift the pair immediately towards 0.7460-70 resistance, above which the pair seems all set to reclaim 0.7500 handle and aim back towards retesting its next major resistance near 0.7600 round figure mark.