AUD/USD flirting with daily lows near mid-0.7500s

The AUD/USD pair snapped two-days of recovery move and traded with mild bearish bias on Tuesday, reversing majority of previous session's recovery move.

Currently hovering around 0.7550 region, testing session lows, the pair came under some renewed selling pressure after NAB reported business confidence index for February dropped to 7 as compared to previous month's reading of 10. This coupled with the NAB business survey at 9, compared to previous reading of 16, and mixed Chinese data failed to provide any immediate boost to the pair. Chinese economic data released on Tuesday showed retail sales growth at 9.5% y/y in Jan, missing the estimate of 10.5%, while industrial production and fixed asset investment bettered estimates at 6.3% and 8.9% respectively. 

Meanwhile, a mildly positive tone around the US treasury bond yields lend support to the US Dollar and further collaborated to the offered tone surrounding higher-yielding currencies - like the Aussie. 

With an empty US economic docket, traders will remain focus on the US bond yield dynamics ahead of the key Fed monetary policy decision announcement, and updated economic projections, due on Wednesday.

Technical levels to watch

Immediate support on the downside is pegged at the very important 200-day SMA near 0.7535 region, below which the pair is likely to accelerate the slide towards the key 0.75 psychological mark before eventually dropping to its next support near 0.7475 level.

On the upside, 50-day SMA near 0.7575 area is likely to act as immediate hurdle, which if cleared seems to lift the pair beyond 0.7600 handle towards its next resistance near 0.7630-35 region (March 7 high).