AUD/USD rejected near 0.7600 handle, drifts into negative territory

The AUD/USD pair reversed early gains to over two-month high level beyond 0.7600 handle and has now drifted in to negative territory.

Currently trading around 0.7570 region, testing session lows, the pair failed to decisively break through 0.7600 handle amid a mild US Dollar recovery, led by a bounce back in the US treasury bond yields, which tends to drive flows away from higher-yielding currencies - like the Aussie.

Moreover, a subdued price action in commodity space has failed to extend any additional support to the major and thus, prompted some profit-taking at higher levels.

Investors on Tuesday would remain focused on the UK Supreme Court's ruling on Brexit, which might trigger a fresh bout of volatility in the FX market, providing some impetus for risk-associated assets and eventually driving the major during European session.

Later during NA session, existing home sales data from the US would be looked upon to grab some short-term trading opportunities ahead of Australian CPI print during early Asian session on Wednesday. 

Technical levels to watch

A follow through retracement below 0.7555-50 support is likely to accelerate the slide towards 0.7525-20 intermediate support ahead of the very important 200-day SMA support near 0.7500 psychological mark. 

On the flip side, 0.7590-0.7600 region remains immediate strong hurdle, which if cleared decisively is likely to trigger a fresh leg of up-move towards 0.7650 resistance area, with some intermediate resistance near 0.7630 level.