AUD/USD struggling to defend 0.80 mark

The AUD/USD pair reversed post-RBA uptick back closer to 26-month highs and has now moved on the brink of drifting into negative territory for the first time in last three trading sessions. 

The pair failed to build on upbeat China Caixin Manufacturing PMI and once again struggled to hold on to its early strength above the 0.80 psychological mark. Meanwhile, bulls seemed uninspired by today's RBA decision to leave the official cash rate unchanged at 1.5% and unwillingness to jawbone on the recent upsurge of the Australian Dollar.

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In absence of any hawkish surprise, traders seemed prompted to take some profits off the table amid a modest US Dollar recovery. Moreover, the prevalent positive tone around the US Treasury bond yields, which tend to weigh on higher-yielding currencies - like the Aussie, might have also collaborated to the pair's dip below the 0.80 handle. 

Traders now look forward to today's US economic docket, featuring the release of personal income/spending data, Core PCE Price Index and ISM manufacturing PMI, in order to grab some short-term trading opportunities. The key focus, however, would remain on the keenly watched NFP data, due on Friday, which would help determine the next leg of directional move for the major.

Technical levels to watch

A follow through retracement below 0.7985 level is likely to get extended towards 0.7965-60 horizontal support en-route 0.7935 level and the 0.7900 handle. On the upside, 0.8030 level now becomes an immediate hurdle, which is followed by multi-month highs resistance near the 0.8065 region.