AUD/USD trying to defend 0.75 psychological mark

The AUD/USD pair remained well-offered for the second consecutive session, albeit has managed to bounce of few pips from 0.7500 neighborhood to currently trade around 0.7515-20 band.

Spot built on previous session's retracement, led by perceived dovish RBA monetary policy meeting minutes, and fell farther below the very important 200-day SMA level to a fresh one week low. 

Adding to this, a goodish recovery in the US treasury bond yields, helping the key US Dollar Index to bounce off three-week lows, further collaborated towards driving flows away from higher-yielding currencies - like the Aussie.

Meanwhile, a mildly positive trading sentiment surrounding copper prices seems to have lend support and assisted the pair to defend the key 0.75 psychological mark, at least for the time being.

   •  AUD/USD neutral, likely between 0.7475 and 0.7600 – UOB

With an empty US economic docket, the US treasury bond yield dynamics and commodity prices would drive sentiment around riskier assets and influence the major during the NY trading session.

Technical levels to watch

On a sustained break below the 0.75 handle, the pair is likely to dart towards three-month lows support near 0.7470 area before eventually heading towards its next support near 0.7430-25 area. 

Conversely, any recovery attempts beyond 0.7535 level might now confront resistance at 200-day SMA near 0.7555-60 region, above which a bout of short-covering could lift the pair beyond 0.7600 mark towards testing 50-day SMA hurdle near the 0.7615-20 region.