AUD/USD reverses Monday’s up-move, drops back to 0.7660 support

The AUD/USD pair came under renewed selling pressure on Tuesday and dropped back to its immediate important support near the 0.7660 region. 

Late Monday hawkish comments from the Philadelphia Federal Reserve Bank President Patrick Harker, fueling expectations of an eventual Fed rate-hike action, sooner-rather-than-later, lifted the US Treasury bond yields across the board and attracted some fresh selling pressure around the higher-yielding currencies - like the Aussie.

In addition to this, the minutes from RBA's monetary policy meeting in February, which showed the central bank's readiness to hold rates lower for longer to further support growth also weighed on the Australian Dollar and collaborated to the pair's slide on Tuesday, reversing previous session’s recovery move.

Focus now shifts to a slew of important speeches from various Fed officials and hence, the US Dollar price dynamics would remain an exclusive driver of the pair's movement on Tuesday. Meanwhile, the US economic docket, featuring the release of flash US PMI prints, might also provide some impetus for short-term traders.

Technical levels to watch

On a sustained weakness below 0.7660-55 immediate support, the pair is likely to aim towards 0.7610 support area before eventually breaking below 0.7600 handle and head towards its next support near 0.7555-50 region. On the upside, 0.7685-90 region now seems to have emerged as immediate resistance above which the momentum could lift the pair to 0.7720-30 resistance area ahead of Nov. daily closing highs resistance near 0.7760 region.