AUD/USD changes course in sync with Oil, back below 0.7600

The bullish momentum seen behind the AUD/USD pair faltered ahead of 0.76 handle, now sending the major sharply lower below the last in a bid to test 5-DMA located at 0.7550.

AUD/USD sold-off as oil resumes slide

Currently, the AUD/USD pair trades -0.39% lower at fresh session lows of 0.7574, unable to take-out fresh multi-week tops reached at 0.7615 levels in the Asian trades. The Aussie stalled its winning streak and turned negative in Europe, closely tracking the oil price-action, as fresh selling in the oil prices dragged the resource-linked AUD lower.

The renewed weakness in the Aussie can be also attributed to a round of profit-taking after the major failed to hold above 0.76 handle, as markets reposition themselves ahead of the RBA monetary policy decision due tomorrow.

Earlier on the day, the AUD/USD pair rallied to fresh three-week highs above 0.76 barrier, following the release of auspicious Chinese manufacturing PMI data. China's Caixin PMI for July outpaced expectations by over 2 full points.

In the meantime, all eyes remain focused on the upcoming ISM manufacturing report due out from the US economy, for fresh momentum on the major.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7650/58 (psychological levels/ Jul 12 high) above which gains could be extended to the next hurdle located at 0.7700 (round figure). On the flip side, the immediate support located at 0.7557/42 (5 & 20-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7500 (round number/ 1h 200-SMA).