AUD/USD drops back to session low

After fading upbeat Australian CPI-led strong gains beyond 0.7700 handle, the AUD/USD pair came under fresh selling pressure on Thursday amid renewed greenback buying interest.

Currently trading near session low around 0.7625-20 region, today's disappointing release Australian import prices data provided little incentive for bulls and the pair extended Wednesday's reversal 4-day high touched in the aftermath of stronger-than-expected Australian quarterly CPI print.

Spot prices on Wednesday witnessed a sharp reversal amid reemergence of broad based US Dollar strength, which continues to gain traction on growing market expectations that the Federal Reserve would eventually raise interest rates at the December meeting. 

Later during NA session on Thursday, US economic docket featuring the release of monthly durable goods orders and pending home sales should assist traders to grab short-term trading opportunities. However, Friday's release of quarterly US growth figures would be the next big fundamental trigger that would help determine the pair's next leg of directional move. 

Technical levels to watch

Immediate downside support is pegged near 0.7610 area, which if broken is likely to accelerate the slide towards weekly lows support near 0.7590-85 zone before the pair eventually drops to 100-day SMA support near 0.7565 region. On the upside, 0.7645-50 area (session peak) is seen as immediate resistance above which the pair is likely to aim back towards reclaiming 0.7700 handle.