AUD/USD breaks below 50-DMA on stronger ISM PMI

After initially struggling for a firm direction, the AUD/USD pair finally broke below 50-day SMA key support following the release upbeat US ISM non-manufacturing PMI.

The greenback caught fresh bids and erased all of its disappointing ADP report-led retracement after ISM services PMI printed stronger-than-expected reading of 57.1 for September. The reading surpassed even the most optimistic estimates and was much stronger than 51.4 recorded in August. 

Adding to this, US factory orders unexpectedly rose by 0.2% in August and provided an additional boost to the already stronger greenback. 

Following the releases, spot came under fresh selling pressure and is now sustaining its weakness below 0.7600 handle, inching closer to a two-week lows support near 0.7590.

Technical levels to watch

A follow through selling pressure below 0.7590 support seems to accelerate the slide immediately towards 0.7570-65 horizontal support before the pair aims towards testing 100-day SMA support near 0.7510 region.

On the upside, 0.7615 now becomes immediate resistance above which the pair is likely to extend the recovery towards 0.7630-35 region and further towards its next major hurdle near session high around 0.7645-50 region.