AUD/USD stages a notable recovery, moves back closer to 0.76 mark

The AUD/USD pair staged a remarkable recovery from over one month low touched earlier today and has now moved into positive territory, fast approaching the 0.7600 handle.

A broad based greenback pull-back, with the key US Dollar Index extending its retracement from yesterday's two-month highs and retreating further below the 102.00 handle, has been a key factor assisting the pair's recovery from the lowest level since Jan. 31. Adding to this, a technical bounce in commodity space, following yesterday's slump, further boosted demand for commodity-linked currencies - like the Aussie, and could have triggered a short-covering rally. 

It, however, remains to be seen if the pair is able to build on the ongoing recovery move or the bounce back is seen as an opportunity to initiate fresh short positions amid growing prospects for an eventual Fed rate-hike action.

On the economic data front, the US ISM non-manufacturing PMI might provide some impetus for short-term traders but the key determinant for the pair's next leg of directional move would be a slew of speeches from various FOMC officials, including the Fed Chair Janet Yellen, later during the day. 

Technical levels to watch

From current levels 0.7600 handle is likely to act as immediate resistance, which if cleared could extend the short-covering bounce towards 0.7620 level ahead of 0.7635-40 strong horizontal resistance. On the downside, weakness back below 0.7570-65 area seems to drag the pair back towards mid-0.7500s, en-route the very important 200-day SMA support near 0.7525-20 region.