AUD/USD in trouble as bears attack 0.75 psychological mark

The AUD/USD pair extended breakdown momentum below the very important 200-day SMA and has now dipped below the key 0.7500 psychological mark, the lowest level since mid-Jan.

Persistent US Dollar demand amid surging US treasury bond yields, especially after Wednesday's impressive ADP report, has been a key factor weighing on higher-yielding currencies - like the Aussie. 

Adding to this, weaker sentiment surrounding commodity-space, in particular copper prices could also be attributed to the offered tone surrounding the resource-linked Australian Dollar.

With markets already pricing-in an imminent March Fed rate-hike, a subsequent drop below 0.7480-75 zone could further lead to long-unwinding pressure and exert some additional selling pressure around the major.

Later during the day, the usual release of weekly jobless claims data from the US would be looked upon for short-term trading impetus ahead of Friday's key NFP report.

Technical levels to watch

Immediate support is pegged near 0.7480-75 area, below which the pair is likely to accelerate the downslide towards 0.7415-10 strong support, with some intermediate support near 0.7445-40 region.

On the upside, recovery back above 0.7525-30 region (200-day SMA) could get extended towards 50-day SMA hurdle near 0.7555 level, above which a fresh bout of short-covering could lift the pair back towards the 0.7600 handle.