AUD/USD plummets to session lows below 0.76 handle

Having posted a session high near 0.7630 level, the AUD/USD pair ran through some fresh offers and has now weakened back below the 0.7600 handle.

With investors looking past rising geopolitical tensions between the US and N. Korea, a fresh wave of greenback buying interest helped the key US Dollar Index to extend its cautious recovery move from nine-month low touched last week and was seen weighing on the major.

Adding to this, a sharp sell-off in commodity space, especially copper and oil, further dented sentiment surrounding commodity-linked currencies and collaborated to the pair's sharp retracement even below Tuesday's post-RBA swing lows near 0.7590 region.

   •  RBA refuses to join hawks due to strong AUD

Investors on Wednesday would remain focused on the release of FOMC meeting minutes, which if reinforces expectations for another Fed rate hike action by the end of this year would continue to drive flows away from higher-yielding currencies - like the Aussie.

   •  FOMC minutes to dominate – RBC CM

Technical levels to watch

A follow-through selling pressure below 0.7585-80 area would turn the pair vulnerable to accelerate the slide back towards the very important 200-day SMA support near 0.7530 region.

On the upside, any recovery attempts back above the 0.7600 handle might continue to confront some fresh supply near 0.7630-35 region, which if cleared has the potential to lift the pair back towards 0.7680 horizontal resistance.