AUD/USD fizzles RBA-led recovery, drops back to 0.7500 handle

The AUD/USD pair failed to build on to its RBA-led recovery momentum and is now fast approaching 0.7500 handle as global risk-off sentiment extended support to the safe-haven appeal of the US Dollar. 

Earlier during Asian session, the pair recovered after dipping below 0.7500 handle after RBA decided to leave the cash rate unchanged at 1.75%. The recovery momentum, however, was short-lived as global risk aversion boosted demand for the greenback that weighed on commodities and commodity-linked currencies - like the Aussie.

Adding to this, prospects of further easing by the Australian central bank in the near-term was also seen capping up-move for the pair. Central banks will continue to grab investors' attention this week and traders now turn their focus to the scheduled release of FOMC meeting minutes on Wednesday. 

On Tuesday, US factory orders might provide some momentum trading opportunities for short-term traders.

Technical levels to watch

Weakness below 0.7500 handle seems to drag the pair back towards 100-day SMA important support around 0.7450-45 region. A sustained break back below 100-day SMA support now seems to force the pair to break below 0.7400 round figure mark support and drop to 0.7350 intermediate support before heading towards its next major support around 0.7320-0.7300 region (nearing the very important 200-day SMA).

On the flip side, the pair needs to build on to its momentum above 0.7540-45 region in order to make a fresh attempt towards reclaiming 0.7600 handle. A decisive move above 0.7600 handle now seems to pave way for further near-term appreciating move for the pair.