AUD/USD drops below the 0.74 handle as markets continue to wither

• The Aussie gets familiar with the 0.7400 level as the week continues to slide.
• Wednesday delivers no functional events, though the US session is populated with mid-tier reports.

The AUD/USD is in play near 0.7390 in the overnight session heading into Wednesday's market action, after a thin macro calendar and market sentiment on unsure footing saw Tuesday extend the week's declines.

The Aussie continues to backslide from last week's peak on Friday near 0.7440 as broader risk appetite continues to struggle amidst ongoing trade concerns, coupled with a very thin economic calendar that has seen little data of impact for the first half of the week.

Wednesday again delivers a blank calendar for the AUD, and the AUD/USD can be expected to continue waffling against a backdrop of souring risk appetite as broader markets grapple with tensions emanating from the US over global trade.

AUD/USD levels to watch

As noted by FXStreet's own Valeria Bednarik, "the 4 hours chart shows that the pair settled a few pips below a mild bullish 20 SMA, while far above the current level, the 100 SMA accelerates below the 200 SMA, a sign that bears maintain control of the pair. In the same chart,  technical indicators entered negative territory, the Momentum now flat and the RSI still heading south at around 42, favoring additional declines on a break below 0.7380, the immediate support, toward fresh yearly lows near 0.7300."

Support levels: 0.7380 0.7345 0.7310

Resistance levels: 0.745 0.7470 0.7505