AUD/USD headed back to Friday's multi-week lows

Having repeatedly failed to sustain its recovery back above the 0.7600 handle, the AUD/USD pair came under some renewed selling pressure on Wednesday and has now dropped back closer to multi-week lows touched on Friday. 

A fresh leg of up surge in the US treasury bond yields, amid growing bets for an eventual Fed rate-hike action next week, continues to underpin the US Dollar demand and driver flows away from higher-yielding currencies - like the Aussie. 

Adding to this, continuous weakness in commodity markets since the beginning of this month, especially copper, is further denting demand for commodity-linked currencies and collaborating to bearish sentiment surrounding the major. 

From technical perspective, the pair is fast approaching 4-week lows support near 0.7545 region, also coinciding with 50-day SMA. Hence, a follow through selling pressure should pave way for continuation of the pair's sharp reversal move from 3-1/2 month high level of 0.7740 touched on Feb. 23.

Next in focus would be the US economic docket, featuring the release of ADP report on private sector employment and Revised Q4 Nonfarm Productivity data.

Technical levels to watch

Weakness below 50-day SMA support near 0.7545 level is likely to accelerate the slide towards the very important 200-day SMA support near 0.7530 region, below which the pair is likely to turn vulnerable to break below the 0.7500 psychological mark and head towards testing 0.7475 support area.

On the flip side, 0.7585-90 area now seems to cap any immediate recovery, above which the pair is likely to aim back towards 0.7630 resistance (yesterday's high) ahead of its next major hurdle near 0.7670-75 region.