AUD/USD jumps back to 0.7565 important barrier

Having posted a session low near 0.7530 region, the AUD/USD pair regained traction and refreshed daily highs during early European session.

The pair benefitted from today's better-than-expected Chinese industrial production and retail sales data, which seems to have negated a slowdown in fixed asset investment and eased concerns of any major slowdown in the world's second largest economy. The latest leg of up-move could be attributed to IMF's upward revision of Chinese 2017 GDP growth forecast to 6.7% from 6.6%, which further underpinned demand for the China-proxy Australian Dollar. 

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Moreover, a mildly weaker tone around the US treasury bond yields, which failed to extend any immediate support to the US Dollar, further boosted higher-yielding currencies and lifted the pair back towards a strong barrier near 0.7565-60 band. 

It, however, remains to be seen if bulls manage to clear the said hurdle or the pair once again runs through some fresh supply ahead of the much awaited FOMC announcement and important US macro data - CPI print and monthly retail sales data for the month of May. 

From a technical perspective, the pair has repeatedly failed to sustain its move above 100-day SMA, twice in the previous five trading sessions, and hence, only a strong follow through buying interest might trigger a sharp short-covering rally ahead of the big event risk. 

Technical levels to watch

Sustained momentum above 0.7560-65 zone has the potential to lift the pair immediately towards 0.7590 horizontal resistance en-route 0.7610 level (April 17 high). 

On the flip side, retracement back below 0.7545 level, leading to a subsequent  break through 0.7530 support, would turn the pair vulnerable to drop below the key 0.75 psychological mark and head towards testing its next support near 0.7475-65 region.