AUD/USD recovers from session low, still in red at 0.7485

The AUD/USD pair resumed with its near-term weakening trend and dropped back to 0.7460-50 immediate support region before retracing few pips to currently trade around 0.7480-85 band.

On Thursday, the pair witnessed a tepid recovery bounce, benefitting from broadly weaker US Dollar, and attempted a move back above 0.7500 handle. The recovery, however, was short-lived as the greenback regained traction on the back of better-than-expected existing home sales and weekly jobless claims data released on Thursday, which continues to fuel speculations of an imminent Fed rate-hike later during this year.

Moreover, weak sentiment around Asian equity market also seems to boost the safe-haven appeal of the US Dollar, which seems to weigh on commodities and commodity-linked currencies - like the Aussie.

An empty economic docket on Friday is unlikely to provide any respite and the pair seems to continue witnessing selling pressure on expectations of further rate-cut announcement by RBA in August. 

Technical levels to watch

Sustained weakness below 0.7460-50 immediate support is likely to get extended immediately towards 50-day SMA support near 0.7400 handle, below which the pair seems to continue drifting lower in the near-term towards the very important 200-day SMA support near 0.7320 region.

On the flip side, the pair now needs to sustain its recovery above 0.7515-20 immediate resistance in order to increase the possibilities of further near-term recovery. Hence, momentum above 0.7515-20 area now seems to boost the pair immediately towards 0.7560-65 region, which if conquered should assist the pair back towards its next major resistance near 0.7610-15 region.