AUD/USD uninspired by RBA, reverses Monday’s up-move

Having faced rejection near 0.7500 psychological mark, the AUD/USD pair came under renewed selling pressure on Tuesday and has now reversed all of its gains recorded in the previous session. 

Currently hovering around mid-0.7400s, the pair failed to gain any fresh traction after RBA, on expected lines, decided to keep benchmark interest-rates unchanged. The board, however, did signal a possible near-term economic slowdown (before picking up again), which was seen weighing on the Australian Dollar. Moreover, a mild retracement in commodity prices, especially Copper, is also seen denting demand for commodity-linked currencies - like the Aussie. 

Focus now shifts to the key Australian GDP number for the third quarter of 2016, slated for release during early Asian session on Wednesday. In the meantime, US economic docket might provide some impetus for the pair during early NA session on Tuesday.

Technical levels to watch

A follow through weakness below 0.7435-30 immediate support is likely to accelerate the slide back towards 0.7410 support area (yesterday's low) before the pair eventually breaks below 0.7400 handle and head towards testing 0.7380 support. On the upside, momentum above 0.7470 could get extended, but might continue to confront strong resistance near 0.7500 psychological mark above which the pair seems all set to head back towards the very important 200-day SMA resistance near 0.7530 region.