AUD/USD refreshes session low near mid-0.7400s

Having touched a four high level of 0.7475, the AUD/USD pair ran through some fresh offers and reversed part of previous session’s recovery gains from over one-week lows.

The pair drifted lower despite of today's release of Chinese PMI prints, showing non-manufacturing PMI rose to 54.5 in May and manufacturing PMI held steady at 51.2, but failed to benefit China-proxy Australian Dollar.

Meanwhile, a sharp recovery in the US treasury bond yields, underpinning the US Dollar demand, seems to be the key factor driving flows away from higher-yielding currencies and dragged the pair to session lows near mid-0.7400s. 

Moreover, traders also seemed inclined to lighten their positions ahead of Thursday's important Australian macro data - Private Capital Expenditure and Retail Sales.

In the meantime, today's US economic docket that includes - Chicago PMI and Pending Home Sales data, would now be looked upon for some fresh trading impetus.

Technical levels to watch

A follow through retracement below 0.7440 immediate support is likely to accelerate the slide back towards the 0.7400 handle, below which a fresh leg of weakness could drag the pair back towards 0.7375-70 area ahead of 0.7350-45 important support.

On the upside, sustained momentum back above 0.7465-70 area now seems to lift the pair towards the key 0.75 psychological mark (also coinciding with 50-day SMA) before the pair eventually aims towards testing 100-day SMA hurdle near the 0.7550-60 region.