AUD/USD drops to session low at 0.7620

Having registered gains for four consecutive sessions, the AUD/USD pair traded with mild negative bias amid tepid greenback recovery and has now dropped to a fresh session low. 

Currently trading at 0.7620 region, the pair extended its retracement from a two-week high level of 0.7675 touched in the aftermath of Fed inaction and mixed US economic data releases on Thursday. 

As the post-FOMC sell-off subsided, the US Dollar staged a minor recovery and forced traders to take some profits off the table following its sharp up-move of over 200-pips from last week's low near 0.7440 level. Moreover, a retracement in commodities and prevalent cautious risk sentiment is also contributing to some selling pressure around commodity-linked currencies - like Aussie.

With no major economic releases slated for release on Friday, the pair remains at the mercy of a follow through buying interest around the greenback.

Technical levels to watch

From current levels, 0.7600 handle might extend some immediate support, which if broken is likely to drag the pair towards 50-day SMA support near 0.7580 region. A convincing break below 50-day SMA, leading to a subsequent drop below 0.7565 horizontal support, might turn the pair vulnerable to head back towards retesting 0.7500 psychological mark support. 

On the flip side, 0.7640 level now seems to act as immediate resistance above which the pair is likely to attempt a move beyond 0.7675 resistance and aim towards reclaiming 0.7700 handle.