The AUD/USD pair struggled to build on early recovery move and continued navigating in the region of three-week lows touched in the previous session. 

Currently trading around 0.7570-65 band, Tuesday's perceived dovish RBA monetary policy statement, amid concerned over economic risks for the Chinese economy, continues to weigh on the Australian Dollar and seems to be one of the key factor restricting any meaningful recovery from the very important 200-day SMA support.

Meanwhile, a consolidative greenback price-action, with the key US Dollar Index stuck in a narrow range below mid-100.00s, has failed to provide any impetus for the pair's movement on Wednesday.

However, the prevalent positive trading sentiment surrounding commodity space, especially copper, extended some support to the commodity-linked currencies, including the Aussie. Adding to this, a soft performance by the US treasury bond yields further benefitted higher-yielding currencies and also seems to be collaborating towards limiting any immediate downslide for the major, at least for the time being. 

Wednesday's key focus would be on the US economic docket, featuring the release of ADP report on private sector employment, ISM non-manufacturing PMI and minutes of the latest FOMC meeting, which might influence investors’ expectations over the Fed's near-term monetary policy outlook and eventually determine the pair's next leg of directional move.

Technical levels to watch

From current levels, any recovery move is likely to confront immediate resistance near the 0.7600 handle, above which a bout of short-covering could lift the pair back towards 50-day SMA hurdle near 0.7630 region. On the downside, the 0.7555-50 region (200-day SMA) remains immediate strong support to defend, which if broken is likely to accelerate the slide towards the key 0.7500 psychological mark ahead of 0.7475 horizontal support.