AUD/USD flirting with 0.7500 psychological mark

The US Dollar gained further traction following the release of solid ADP report, with the AUD/USD pair dropping to fresh session low level of 0.7490 before retracing few pips to currently trade back above 0.7500 psychological mark. 

Currently hovering around 100-day SMA, the pair moved within striking distance of monthly low of 0.7487. Earlier on Wednesday, the pair’s attempted tepid recovery got sold into amid bullish sentiment surrounding the greenback. 

Moreover, the latest ADP report, which showed addition of 177k new private sector jobs, exerted further selling pressure surrounding the major. The ADP report is seen as a leading indicator of the official non-farm payrolls (NFP), due on Friday, and hence, provided an additional boost to the greenback. 

However, the near-term direction still remains dependent on Friday's release, which would be a key drive of the Federal Reserve's next monetary policy move. 

Next in focus from US economic calendar would be the release of Chicago PMI for August and pending home sales data for the month of July.

Technical levels to watch

On the immediate downside, bulls will make an attempt to defend monthly low 0.7487, which if broken is likely to accelerate the downslide immediately to 0.7465-60 horizontal support. Meanwhile on the upside, 0.7530-35 area now becomes immediate resistance above which the pair could head back towards 0.7580-85 resistance zone.