AUD/USD breaks lower towards 0.7650 amid softer commodities

The AUD/USD pair finally broke the overnight consolidation box to the downside over the last hour, after having met strong supply on resurgent USD demand and weakness surrounding commodities’ prices.    

The Aussie ended its 3-day upbeat momentum and retreated sharply from near four-day tops reached yesterday at 0.7677, as steep losses seen in gold and copper prices dented the sentiment around the resource-lined AUD.

Moreover, a solid comeback staged by the greenback versus its main competitors so far this session, also adds to the renewed sell-off in the major. The US dollar moves up in tandem with a pick-up in buying interest around the shorter-duration treasury yields, as markets cheer hawkish Fedspeaks.

Later today, the spot will get influenced by the USD dynamics, as focus shifts away from the Brexit talks, in the wake of upcoming US growth figures and Fedspeaks.

AUD/USD Levels to watch   

At 0.7659, the pair finds the immediate support located at 0.7605/01 (Mar 27 & 24 low). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7550 (200-DMA/ psychological mark) and below that 0.7519/00 (100-DMA/ zero figure). On the flip side, the immediate resistance at 0.7677 (daily high) above which gains could be extended to the next hurdle located 0.7692/0.7700 (Mar 22 high/ round number) and 0.7752 (4-month tops).