AUD/USD turns negative, back below 0.7500 handle

The AUD/USD pair once again faced rejection at 0.7550 region and faded early recovery bounce to currently trade near session low level, back below 0.7500 handle. 

The pair got an early boost despite of disappointing quarterly PPI reading and monthly Private Sector Credit data. The up-move was primarily led by a broadly weaker US Dollar, which fell sharply on the back of intense selling pressure against its Japanese counterpart as markets seemed disappointed by BOJ monetary policy decision.

Meanwhile, increasing prospects of further monetary easing by RBA continues to weigh on the Australian Dollar and restricted further upside for the AUD/USD major.

Markets now await the release of US GDP print, later during NA session, which is expected to show an annualized growth rate of 2.6% during second quarter of 2016. 

Trade the US Gross Domestic Product - July 29 GDP Live Coverage

Technical levels to watch

From current levels, weakness below 100-day SMA support near 0.7485 region is likely to drag the pair immediately towards 50-day SMA support around 0.7430-25 area, below which the pair seems vulnerable to continue drifting lower towards testing its next major support marked by 200-day sMA, currently near 0.7325 level.

On the flip side, 0.7540-50 zone now seems to have emerged as immediate strong resistance. Only a sustained move above this strong resistance might negate near-term bearish outlook and seems to lift the pair back towards 0.7600-20 strong resistance.