AUD/USD extends the drop to 0.7500 post-softer China CPI

The selling pressure behind the Aussie intensified last hour, as markets sold-off the AUD in a delayed reaction to poor Chinese CPI figures, which overshadowed a robust increase in the factory gate prices.

The AUD/USD pair is now testing bulls’ commitment at fresh six-week lows reached last minutes at 0.7509, as a warning from the Australian PM Turnbull on the trajectory of the Coalition's budget also added to the renewed weakness seen behind the pair.

Furthermore, the latest leg down in the spot can be also partly attributed to a fresh bout of USD buying across the board, as the treasury yields accelerate northwards.

Focus now shifts towards the US employment numbers, with the jobless claims next on tap ahead of Friday’s payrolls data.

AUD/USD Levels to watch   

At 0.7510, the pair finds the immediate support located at 0.7481 (100-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7463 (classic S2/ Fib S3) and below that 0.7406/00 (classic S3/ round number). On the flip side, the immediate resistance at 0.7542/60 (200 & 5-DMA) above which gains could be extended to the next hurdle located 0.7597/0.7607 (10 & 50-DMA) and 0.7641/42 (classic R2/ 20-DMA).