AUD/USD surrender early gains, back closer to mid-0.7500s

   “¢   USD recovers early lost ground and prompts some fresh selling.
   “¢   A sudden fall in copper prices adds to the downward pressure.

The AUD/USD pair struggled to build on the early uptick and has now retreated around 20-pips from Asian session high level of 0.7581.

The Italian political euphoric quickly faded and a sudden fall in the shared currency helped the US Dollar to recover early lost ground, which was eventually seen prompting some fresh selling around the major.

This coupled with a sudden sharp slide in copper prices further dented sentiment around the commodity-linked Australian Dollar and collaborated to the pair’s retracement back to the lower end of its daily trading range.  

Looking at the broader picture, the pair has been oscillating within a broader trading range over the past one-week or so and hence, traders are likely to wait for a decisive break before positioning for the next leg of directional move.

With the US markets closed in observance of Memorial Day, the pair seems more likely to extend its range-bound price action and look forward to this week’s important release of the keenly watched US non-farm payrolls data (NFP) for some fresh directional impetus.  

Technical levels to watch

A follow-through retracement below 0.7540 level is likely to accelerate the fall towards 0.7515 level en-route the key 0.7500 psychological mark. On the upside, momentum beyond 0.7580 immediate hurdle is likely to confront stiff resistance near the 0.7600 handle, which if cleared might trigger a short-covering bounce towards 0.7645-50 supply zone.