AUD/USD inching closer to 0.7600 handle

The AUD/USD pair maintained its strong bid tone on Tuesday, backed by global risk-on sentiment, and is now inching closer towards reclaiming 0.7600 mark.

On Monday, the pair dipped to 0.7520 region as the US Dollar continued to benefit from last week's surprisingly strong employment details. The pair, however, resumed with its post-Brexit recovery trend on Tuesday on increasing likelihood of additional stimulus by the PBOC after the release of yet another weak inflation report over the weekend. Chinese headline CPI moderated further in June to a 5-month low and came-in at 1.9% y-o-y as compared to 2% recorded in May. 

Adding to the bullish sentiment surrounding the Australian Dollar, the National Australia Bank (NAB) business confidence index jumped from 3 in May to 6 in June. Moreover, a broadly weaker US Dollar also seems to assist recovery in dollar-denominated commodities and boosting demand for commodity-linked currencies - like the Aussie. 

Going forward, the pair would continue to take cues from important Chinese economic data scheduled during the course of the week, which includes - trade balance and quarterly GDP data on Wednesday and Friday respectively. 

Technical levels to watch

Strong bullish momentum above 0.7600 handle seems to lift the pair immediately towards pre-Brexit high at 0.7647, above which the pair seems all set to extend its upward trajectory in the near-term. On the flip side, weakness below 0.7560 immediate support, and a subsequent drop below session low support near 0.7530, is likely to turn the pair vulnerable to extend its slide towards testing 100-day SMA support near 0.7460-50 region.