AUD/USD rejected at 200-DMA important hurdle, erases daily gains

The AUD/USD pair failed to build on its ongoing recovery move and has now reversed all off its daily gains to the very important 200-day SMA hurdle.

Earlier during Asian session, the pair extended overnight strong momentum and jumped to one-week high level of 0.7556 after RBA decided to leave the official cash rate unchanged at the historic low of 1.5%. The decision was widely expected, while the accompanying statement did not signify any dramatic shift in the central bank's neutral stance and hence, provided an additional short-covering boost to the major.

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Since then, the pair seems to have lost its upside momentum and confronted some fresh supply near the very important 200-day SMA. The pair's latest leg of retracement from highs could be attributed to the prevalent bearish sentiment surrounding commodity prices, which tends to dent demand for commodity-linked currencies - like the Aussie. 

Meanwhile a modest US Dollar recovery, against the backdrop of disappointing China Caixin PMI, could have also prompted traders to take some profits off the table following over 100-pips rally from last week's multi-month lows. 

Technical levels to watch

A follow through retracement below the key 0.75 psychological mark, the pair is likely to drift back towards 0.7485-80 horizontal support before eventually dropping to test 0.7460-50 important support. 

On the upside, 200-day SMA near 0.7555 region remains immediate strong hurdle, which if conquered is likely to accelerate the up-move further towards 50-day SMA resistance near 0.7590 region.