AUD/USD retreats back closer to 0.75 mark, NFP holds the key

   •  Investors looked past today’s upbeat RBA economic assessment.
   •  A modest USD rebound adds to Chinese PMI led intraday retracement.
   •  All eyes remain glued to the keenly watched NFP and earnings data.

The AUD/USD pair extended its retracement slide from an intraday high level of 0.7561 and is currently placed at fresh session lows, around the 0.7515-10 region. 

The pair failed to capitalize on early up-move, led by upbeat RBA monetary policy statement and was being capped by softer Chinese Caixin Services PMI print for April. This coupled with some renewed US Dollar buying interest exerted some additional pressure and further collaborated to the pair's slide back closer to the key 0.7500 psychological mark.

Meanwhile, the effect of retracing US Treasury bond yields, which tends to benefit higher-yielding currencies, was largely offset by weaker tone around commodity space and did little to lend any support to the commodity-linked Australian Dollar. 

It would now be interesting to see if the pair continues to find some buying near the 0.7500-0.7490 region or the ongoing slide marks resumption of the prior steep depreciating fall as investors look forward to the keenly watched US NFP report for fresh impetus. 

Technical levels to watch

Bulls would be disheartened if the mentioned support is broken, below which a fresh leg of technical selling might continue dragging the pair towards the 0.7450-45 intermediate support en-route the 0.7400 handle.

On the upside, 0.7540 level now seems to act as an immediate resistance, which if cleared might trigger a short-covering bounce towards the 0.7575-80 supply zone en-route the 0.7600 handle.