AUD/USD dips below 0.7600, aiming to retest weekly low

The AUD/USD pair is seen extending its reversal from Tuesday's swing high and has now dropped below 0.7600 handle to currently trade around 0.7590, within striking distance of weekly low touched on Monday. 

Strong US economic data that showed new home sales surged in July is seen helping the greenback to build on to its overnight recovery. A broad based US Dollar recovery is weighing on dollar-denominated commodities and denting demand for commodity-linked currencies - like Aussie. 

Adding to this, Wednesday's release of weaker-than-expected Australian construction data attracted further selling pressure surrounding the major. 

Focus now shifts to today's release of existing home sales data from the US ahead of this week's key event risks, the Fed Chair Janet Yellen's speech at the Jackson Hole symposium and US second estimate of US GDP growth for second quarter of 2016, both scheduled on Friday. 

Technical levels to watch

Weakness below weekly lows support near 0.7580 region seems to drag the pair immediately towards 50-day SMA support at 0.7550 region, below which the pair is likely to extend its downward trajectory towards 100-day SMA around 0.7500 psychological mark.

On the flip side, recovery momentum above 0.7600 handle now seems to confront immediate resistance near 0.7625 level, which if cleared seems to assist the pair back towards 0.7650 strong resistance. A follow through buying interest above 0.7650 would negate bearish expectations and assist the pair back towards 0.7700 round figure mark strong resistance.