AUD/USD remains pressured below 0.7500

AUD/USD  dropped on Wednesday extending the retreated from 2-month highs that reached on Friday at 0.7675. The pair bottomed at the beginning of the American session at 0.7460 and then bounced to the upside.

The recovery was limited and quickly it found resistance at 0.7490. The pair remains near the lows about to post the lowest daily close since July 5.

The US dollar rose not only against the Aussie, but also versus the Kiwi and the Loonie. Commodity currencies failed to benefit from the rally in equity prices.

Testing key trendline

The decline from 0.7670 was capped today around 0.7460. Around that level, there is a relevant dynamic support: a bullish trendline from May lows. A break lower could lead to an extension of the correction. The next important support is seen at 0.7400/05 (July 6 low) followed by 0.7355  (June 13 & 17 low).