AUD/USD recovers to hit a fresh session high at 0.7665

After bottoming out around 0.7636, the AUD/USD pair recovered its lost ground and moved in positive territory to currently trade at session high near 0.7665 region.

The pair last week repeatedly failed to sustain its up-move beyond 0.7750 region and witnessed a sharp reversal on Friday despite of disappointing US economic data that diminished expectations of an eventual Fed rate-hike action in 2016.

A sudden turnaround in sentiment surrounding the greenback led to a broad based profit-taking move in the major, which was already facing some selling pressure around a four-month high level touched earlier during last week. 

With a relatively lighter economic docket, the pair on Monday would be drive solely based on the prevalent sentiment surrounding the greenback and riskier assets, ahead of the release of Empire State Manufacturing Index, later during NA trading session. 

Technical levels to watch

From current levels, momentum above 0.7670-75 immediate resistance should lift the pair back towards 0.7700 handle, above which it seems all set to resume its near-term upward trajectory and make a fresh attempt towards retesting 0.7750 strong resistance area.

On the flip side, 0.7650 level now becomes immediate support to watch for, which if broken now seems to drag the pair below session low towards testing 0.7630-25 support area ahead of 0.7600 round figure mark support.