AUD/USD slides further below 0.7700 handle

After failing to build on to its momentum above 0.7700 handle, the AUD/USD pair is extending its reversal from yesterday's swing high near 0.7750 region and moved further below 0.7700 handle to currently trade around 0.7665-70 band. 

A broad based greenback recovery is weighing on commodities and exerting selling pressure on commodity-linked currencies - like the Aussie. Moreover, markets seem to readjust their positions after yesterday's comments from New York Fed president William Dudley that the Fed is moving closer to raise interest rates further, as soon as in September. 

Hence, today's release of FOMC meeting minutes will be closely scrutinize to evaluate the possibilities of an eventual Fed rate-hike action in 2016 and would act as a key determinant for the major's near-term direction. Markets would also focus on the Australian jobs report, due during early Asian session on Thursday.

Technical levels to watch

From current levels, the pair seems to continue drifting lower towards 0.7650 immediate support, which if broken decisively should accelerate the downslide immediately towards 0.7600 handle. A convincing break below 0.7600 support would now turn the pair vulnerable to head back towards retesting 0.7500 important psychological mark support.

On the flip side, 0.7690-0.7700 region (session high) now seems to have emerged as immediate resistance. Sustained recovery momentum back above this immediate resistance seems to boost the pair back towards recent swing high resistance near 0.7750 region, above which a fresh leg of up-move has the potential to lift the pair towards April high resistance near 0.7800 handle.