AUD/USD recovers early lost ground, hangs closer to 6-week tops

After an initial dip to session lows near 0.7525 region, the AUD/USD pair regained traction and is now placed at session tops near mid-0.7500s.

Spot reversed early losses, led by disappointing Australian trade balance data, and inched back closer to 6-week tops touched in the previous session. A better-than-expected Chinese exports and imports figures extended support to the China-proxy Australian Dollar. Adding to this, a mildly weaker tone around the US Dollar, coupled with a modest up-tick in copper prices, provided an additional boost to the pair's recovery move.

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The pair, however, remained below the key 100-day SMA hurdle and hence, it would be prudent to wait for a strong follow through buying interest before confirming a fresh bullish break-out amid cautious environment ahead of today's big event risks - the ECB policy decision, UK election and former FBI Director James Comey's Senate testimony. 

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Technical levels to watch

Bulls would be eyeing for a decisive break through 0.7565-70 area, above which the pair seems all set to surpass the 0.7600 handle and head towards testing 0.7610-15 resistance area. On the flip side, retracement back below 0.7525 level (session low) now seems to find strong buying interest near the 0.75 handle and hence, any follow through retracement now seems to be limited at 50-day SMA, resistance turned support, near 0.7490-85 region.