AUD/USD well-offered at 0.7340, tests six-day low

After Monday's failed attempt to move back above 100-day SMA, the AUD/USD pair extended its last week's reversal from 0.7500 handle and is sliding further below 0.7400 level.

Currently trading below 0.7350, the pair continues to be underpinned by the global risk aversion that seems to drive investors away from riskier assets and high yielding currencies like the Australian Dollar. 

Adding to it, weak Chinese economic data is also seen weighing on the Aussie. China being Australia's largest trading partner, economic data from the mainland has a lasting effect on the currency. 

Moreover, with the upcoming Fed monetary policy decision announcement, traders seems to lighten their long bets as a hawkish / less dovish tone is likely to trigger a bullish momentum for the greenback. Meanwhile, ahead of the Fed announcement, US monthly retail sales data would be looked upon to gauge consumer sentiment, which has been the key pillar for the US economic recovery.

Technical levels to watch

From current levels, 0.7320-15 zone, closely followed by 20-day SMA near 0.7290-85 region, seems to extend some immediate support. Weakness below these immediate support levels is likely to get extended towards an important support near 0.7225-20 horizontal area.

On the upside, 100-day SMA near 0.7390-0.7400 region remains immediate hurdle to clear, which if conquered seems to boost the pair immediately towards 0.7430-35 resistance ahead of the important psychological resistance around 0.7500 handle.