AUD/USD trading with bearish bias for third consecutive session

The AUD/USD pair remained under some selling pressure for the third consecutive day and has now dropped to weekly lows near 0.7560-55 region.

The minutes of the June RBA meeting, released on Tuesday, repeated the central bank's worries over slowing wage growth and household debts. Adding to this, RBA's concerns that a rising Australian Dollar would complicate the country’s necessary economic adjustment, accompanied with a slide in commodity prices was seen weighing on the pair through Asian session on Wednesday.

Meanwhile, persistent US Dollar buying interest, backed by the hawkish Fed outlook and continuous up-tick in the US Treasury bond yields, further drove flows away from higher-yielding currencies and collaborated to the pair's reversal move from the vicinity of 1-1/2 month highs resistance near 0.7630-35 region. 

Later during the NA session, the release of existing home sales data from the US would now be looked upon for some trading impetus. In the meantime, broader market risk-sentiment and the USD price-dynamics would remain key determinants of the pair's movement on Wednesday.

Technical levels to watch

From current levels, 0.7550-45 area is likely to act as immediate support and is closely followed by the very important 200-day SMA support near 0.7530 region. A convincing break below the mentioned supports, is likely to turn the pair vulnerable to break below the key 1.25 psychological mark and head towards testing its next support near 0.7475-65 region.

On the upside, 0.7585-90 area now becomes immediate resistance to clear, above which the pair is likely to make a fresh attempt towards retesting the 0.7630-35 important hurdle.