AUD/USD trims gains, still holding comfortably above 0.7500 handle

After rising to 0.7550 region on broad US Dollar weakness, the AUD/USD pair trimmed its gains but held on to its strength above 0.7500 handle to currently trade around 0.7520 region. 

A mild recovery in the greenback, as measured by the US Dollar index, led by safe-haven demand on weakness in European equities seems to provide some immediate respite for the US Dollar bulls. 

Earlier during the day, the pair rose despite of weaker release of import price index from Australia. The drop in import prices might restrict inflation from rising immediately and provide headroom for RBA to go ahead an ease its monetary policy in August. 

From the US, traders will focus on weekly unemployment claims for immediate momentum play ahead of Friday's release of advanced GDP number for the second quarter. 

Trade the US Gross Domestic Product - July 29 GDP Live Coverage

Technical levels to watch

On the downside, 100-day SMA near 0.7490-85 seems to provide immediate support, which if broken would turn the pair back towards 0.7450 horizontal support. Meanwhile on the upside, 0.7545-50 area now becomes immediate resistance to watch for, above which the pair is likely to extend its bullish traction towards 0.7590-0.7600 area.