AUD/USD fades the risk-on rally, neutral near 0.7660

The Aussie failed once again near higher levels and reverted towards daily lows in early Europe, after having witnessed a somewhat choppy Asian session.

AUD/USD is on a retreat from almost one-week highs reached at 0.7695 on Friday, and looks to test hourly 200-SMA support placed at 0.7639, as the risk-on rally in the Asian equities appear cool-off a bit.

Further, the Aussie surrenders gains, closely tracking the price action around the Comex copper futures, after the red metal eased-off 20-months peak of $ 2.822 to now trade around $ 2.797 per pound.

All eyes now remain on the fundamental, with the US CPI and Aus employment report due later this week, which will provide next direction on the major.

AUD/USD Levels to watch   

At 0.7656, the pair finds the immediate resistance at 0.7699 (multi-week high) above which gains could be extended to the next hurdle located 0.7750 (psychological levels) and 0.7773 (Nov 9 high). On the flip side, the immediate support located at 0.7641/39 (1h 100 & 200-SMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7600 (round figure) and below that 0.7570 (Feb 2 low).