AUD/USD: Bears eyeing a test of 200-DMA

The AUD/USD pair failed to sustain gains and returned to negative territory in the Asian trades, on the back of resurgent USD demand and renewed weakness in oil prices.

AUD/USD losing sight of 0.76 handle

Currently, the AUD/USD pair drops -0.12% to fresh session lows of 0.7524, easing from daily highs reached previously at 0.7542. The Aussie stalled its tepid-recovery and met fresh supply over the last hour amid fresh USD buying, despite the yield differential between the Aus 10-yr and US 10-yr bond yields tilting in favor of the AUD.

The AUD/USD pair drifted lower, as a cautious tone set into the markets, with the Asian equities paring gains, while oil prices turned negative. A risk-off market profile usually weighs on demand for the higher-yielding currency AUD.

Markets now look forward to an eventful US docket today, with the US GDP numbers expected to grab the eyeballs and could influence the USD demand in a big way.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7556/60 (10 & 5-DMA) above which gains could be extended to the next hurdle located 0.7600 (round figure) and 0.7631 (Nov 11 high). On the flip side, the immediate support located at 0.7514 (200-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7476 (100-DMA) and below that 0.7439 (daily S3).