AUD/USD headed back to previous session’s 3-month lows

Having failed to build on early recovery move, the AUD/USD pair came under some renewed selling pressure and drifted into negative territory for the third consecutive session. 

The pair's bearish momentum from the vicinity of 0.7600 handle, touched on Monday, showed no signs of exhaustion and has now moved back within striking distance of three-month lows touched in the previous session. 

A modest US Dollar recovery, despite of subdued action surrounding the US treasury bond yields, seems to be a key factor weighing on the major. Moreover, a slight deterioration in investors' risk appetite, as depicted by weaker trading sentiment around commodity space and equity markets, further refrained investors from buying into riskier / higher-yielding currencies - like the Aussie.

   •  US: Trade policy further supports the USD - AmpGFX

Later during the NA session, the US economic docket would now be looked upon for fresh trading impetus, while Friday's advance US GDP print would act as a key determinant of the pair's next leg of directional move.

Technical outlook

"The pair is at risk of falling further, particularly on a decline below 0.7410, with scope then to extend its slide towards the 0.7250 region during the upcoming days" writes Valeria Bednarik, Chief Analyst at FXStreet.