AUD/USD again rejected near 0.75 mark amid resurgent USD strength

A fresh bout of US Dollar buying interest has emerged in the past couple of hours, with the AUD/USD pair reversing all of its early gains and is now headed back towards the lower end of daily trading range.

Currently trading around 0.7460-70 region, the pair failed to build on to its recovery momentum during mid-European session and once again facing rejection near 0.7500 psychological mark. 

After spending majority of its time below 0.750 mark in the past three week, the pair on Thursday did attempt to break through the said handle. The momentum, however, ran through fresh offers and the pair turned sharply lower amid resurgent greenback strength, primarily led by intense selling pressure around the EUR/USD major in wake of surprise dovish ECB monetary policy stance. 

Moreover, investors appeared to pile-up their long USD bullish positions ahead of next week's FOMC meeting, which is widely expected to bring rate-hike. Moreover, the accompanying rate-statement is anticipated to reveal hawkish outlook, eventually fueling speculations of higher rates going into 2017 and is further weighing on higher-yielding currencies - like the Aussie.

Today's US economic docket, featruing the only important release - Prelim UoM Consumer Sentiment for December, might provide some impetus for short-term traders during NA session.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet, notes, "given that in the 1 hour chart, the price has broken below its 20 SMA, whilst technical indicators head lower around their mid-lines. In the 4 hours chart, the technical outlook is still neutral, with the price hovering around a flat 20 SMA, and technical indicators hovering around their mid-lines, with no clear directional strength. A daily ascendant trend line coming from December low of 0.7370 stands at 0.7430, the level to break to confirm a steeper slide for this Friday."