AUD/USD stuck in a trading range around 0.7500, awaits NFP for fresh impetus

The AUD/USD pair remained well anchored within a short-term trading range and is currently hovering around the mid-point of the trading band at 0.7500 handle. 

During the course of current trading week, the pair maintained a high degree of correlation with global in risk-on / risk-off sentiment. The sudden turnaround in risk sentiment in global financial markets has been the key factor restricting the pair to build on to its gains beyond 0.7500 handle. The pair, however, has managed to hold above 100-day SMA support, shrugging-off S&P’s downgrade of Australia’s sovereign credit outlook. 

On the last trading day of the week, recovery in commodity prices is acting as a supportive pillar for the pair's up-tick to 0.7500 handle. With the scheduled release of NFP data from the US, traders brace for a a spurt in volatility. Today's report would also enable investors to determine the near-term trajectory for the AUD/USD major.

Technical levels to watch

It would be prudent to wait for a decisive break from the near-term trading range before jumping on to the pair's near-term direction. Hence, 0.7530 level on the upside and 0.7450 region on the downside would be immediate resistance and support levels to watch for. Sustained momentum above 0.7530 would pave way for an immediate up-move to June daily closing highs resistance near 0.7600 handle. Alternatively, decisive break below 100-day SMA support near 0.7450 region, seems to drag the pair back below 0.7400 handle towards testing 0.7380-75 horizontal support.