AUD/USD slips below 0.75 mark; more pain ahead?

The AUD/USD pair extended mixed Australian CPI-led downslide and has now slipped below the key 0.7500 psychological mark, to its lowest level since April 12.

Earlier during Asian session, the pair's attempted recovery move got sold into near the very important 200-day SMA following the release of Australian inflation figures. A miss on the headline numbers does not warrant any change to the RBA's neutral stance, but was sufficient to attract a follow through selling pressure around the major.

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Meanwhile, the ongoing up-surge in the US treasury bond yields helped the key US Dollar Index to reverse early losses and continued driving flows away from the higher-yielding currencies - like the Aussie. 

Also collaborating to the pair's strong offered tone was a mildly weaker trading sentiment around commodity space, especially copper, which derives demand for commodity-linked currencies, including the Australian Dollar. 

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It would now be interesting to see if the pair is able catch some fresh bids at lower levels and stage any recovery or additional long-unwinding pressure continues to drive the pair lower even from current levels amid data light US economic docket. 

Technical levels to watch

Bears would be eyeing for a break through 0.7475-70 immediate support, below which possibilities of stops getting triggered could aggravate the selling pressure and accelerate the slide towards 0.7430-25 horizontal support ahead of the 0.7400 handle.

On the upside, any recovery attempt might now confront immediate resistance near 0.7520-25 area. Further recovery beyond this immediate resistance might now be capped at the very important 200-day SMA strong hurdle near 0.7555-60 region.