AUD/USD static at 0.7565 after US ISM manufacturing data

After failing to build on to its Friday’s sharp gains, the AUD/USD pair reversed over 50-pips from session high and remained well offered below 0.7600 handle after the release of US manufacturing data.

The US ISM manufacturing PMI for July unexpectedly dropped to 52.6 as compared to June’s 53.2 and 53.1 expected. The pair, however, had a muted reaction to the release and held near session low to currently trade around 0.7565 region. 

Earlier during the day, the pair got a boost after Chinese manufacturing PMI printed a better-than-expected reading for the month of July. Being Australia's biggest trading partner, positive Chinese economic data boosts demand for the Australian Dollar.

The pair, however, lost upside momentum and failed to sustain its strength above 0.7600 handle. A tepid recovery in the greenback, as measured by the overall US Dollar index, triggered the initial leg of fall for the major. 

Moreover, cautiousness ahead of the much awaited Tuesday’s RBA monetary policy decision forced traders to take some profits off the table. 

Technical levels to watch

On the immediate downside, 0.7550 level seems to provide some support, below which the pair seems to drift back towards 0.7500 psychological mark support, nearing 100-day SMA strong support. On the flip side, bullish momentum above 0.7600 handle, and a subsequent strength above 0.7630 resistance, would now open room for continuation of the pair's near-term upward trajectory towards its next major resistance near 0.7680 region.