AUD/USD sustaining weakness below 0.7600 handle

The greenback maintained its strong bid tone on the first trading day of the week, with the AUD/USD pair holding on to its weakness below 0.7600 handle.

A broad based recovery in the US Dollar is weighing on dollar-denominated commodities and denting demand for commodity-linked currencies - like Aussie. 

Reviving hopes of an eventual Fed rate-hike action in 2016, following last week's hawkish rhetoric from Fed policymakers, has been the key factor driving the US Dollar recovery since the end of last week. Hence, markets this week will remain focused on speech from the Fed Chair Janet Yellen's at the Jackson Hole Symposium for fresh clues over the central bank's monetary policy outlook for 2016.

From technical perspective, the pair's repeated failure to sustain its strength above 0.7700 handle has been pointing to the beginning of a near-term corrective move.

Technical levels to watch

From current levels, the downslide seems more likely to get extended towards 50-day SMA support near 0.7540 region. A follow through selling pressure below this immediate support should immediately drag the pair towards 0.7500 psychological mark, below which the pair seems vulnerable to extend its corrective move towards its next major support near 0.7420-15 area.

On the flip side, any recovery attempts might now confront immediate resistance near 0.7600-0.7610 area, followed by resistance near 0.7650 level. Meanwhile, major upside resistance remains around 0.7695-0.7700 region, which if conquered might negate any near-term bearish bias and help to pair to resume its near-term upward trajectory.