AUD/USD surrenders early gains, confirms strong supply near 100-DMA

The AUD/USD pair surrendered majority of its early gains closer to multi-week tops and is now on the verge of breaking into negative territory.

Currently trading around 0.7540 region, spot once again failed to build on to its momentum beyond 100-day SMA and now seems to have confirmed a strong supply zone near 0.7565 region. 

The latest leg of slide from higher levels could be attributed to a modest up-tick in the US treasury bond yields, which although failed to underpine the US Dollar demand by was seen driving flows away from higher-yielding currencies - like the Aussie.

Adding to this, a fresh wave of selling pressure around copper prices further dented demand for commodity currencies and further collaborated to the pair downslide since early European session. 

Meanwhile, market seems to have digested today's release of NAB Business Confidence Index and now look forward to the latest PPI from the US for some fresh trading impetus ahead of Chinese macro data during early Asian session on Wednesday. 

   •  Dollar longs pared, AUD positioning flips to short – Deutsche Bank

Technical levels to watch

A follow through retracement below 0.7530 level now seems to drag the pair immediately towards the key 0.75 psychological mark en-route 0.7475-65 important horizontal support. On the upside, sustained momentum above 0.7555-60 region (100-day SMA) might trigger a short-covering rally towards 0.7585-90 horizontal resistance ahead of 0.7610 level (April 17 high).