AUD/USD struggling below 0.75 mark

The AUD/USD pair failed to build on early tepid recover move further beyond the 0.75 psychological mark and dropped to nearly three-month low during early European session.

Spot prolonged last week's breakdown momentum below the very important 200-day SMA and is currently hovering around session low touched in the past hour. A weaker commodity prices, especially copper, seems to be a key factor weighing on commodity-linked currencies, including the Australian Dollar. 

Adding to this, escalating geopolitical concerns was seen supporting the US Dollar's safe-haven appeal, against riskier currencies - like the Aussie, and further collaborated to the offered tone surrounding the major for seventh trading session in the previous eight. 

   •  AUD: Weakest of the major currencies - BBH

In absence of any major market moving economic releases, the pair remains at the mercy of greenback price-dynamics and broader market risk-sentiment. Later during the NY session, speech by the Fed Chair Janet Yellen would now be looked upon for the Fed's plan to tighten monetary policy and would eventually provide some fresh impetus.

Technical levels to watch

A follow through weakness below 0.7475 level has the potential to continue dragging the pair further towards 0.7425-20 horizontal support, with some intermediate support near mid-0.7400s.

On the upside, recovery momentum above 0.7500-0.7510 area (session top) is likely to get extended towards 0.7535 level ahead of the 0.7555 important hurdle (200-day SMA).