AUD/USD plummets to lows, around mid-0.7600s

   •  Extends softer Chinese PMI-led rejection slide.
   •  Rebounding US bond yields aggravate selling pressure.

The AUD/USD pair remained heavily offered through the early NA session and is currently placed at fresh session lows, around 0.7655 level. 

Today's weaker-than-expected Chinese manufacturing PMI trigger the pair's initial leg of rejection slide from near the 0.7700 handle, coinciding with the very important 200-day SMA. 

Adding to this, a goodish pickup in the US Dollar demand, backed by a sharp rebound in the US Treasury bond yields further aggravated the selling pressure around higher-yielding currencies - like the Aussie. 

From a technical perspective, the pair struggled to build on its modest recovery move from Friday's 3-month lows and failed to move past an important support break-point, now turned resistance. 

Moreover, reemergence of intense selling pressure at higher levels clearly seems to indicate that the pair remains vulnerable to extend its near-term downward trajectory. 

Net in focus would be the US economic docket, featuring the release of Employment Cost Index, Chicago PMI and Conference Board's Consumer Confidence Index, which might help traders to grab some short-term trading opportunities. 

Technical levels to watch

A follow-through selling pressure now seems to drag the pair below multi-month lows support near 0.7625 level, and the 0.7600 handle, towards its next major support around the 0.7575-70 region.

On the upside, any recovery attempts back above 0.7675 level might continue to confront fresh supply near the 0.7695-0.7700 region, above which a bout of short-covering could accelerate the recovery move towards mid-0.7700s.