AUD/USD extends retracement from Thursday’s multi-week highs

The AUD/USD pair extended its sharp reversal from a three-week high level touched on Thursday and drifted lower for third consecutive day. 

Currently trading around 0.7635 region, a three-day low, a mild greenback recovery during NY trading session on Thursday triggered a sharp profit taking move following a relentless up-surge of nearly 250-pips from 100-day SMA support touched in the previous week. 

Friday's release of lower-than-expected Chinese CPI extended little support to restrict the pair's corrective move from Thursday's swing high level of 0.7732, the highest level since August 16.

In absence of any major economic releases, traders turn their attention to a speech from the Federal Reserve Bank of Boston President Eric Rosengren in order to get clues over the Fed's monetary policy stance at its upcoming meeting on September 20-21, which might eventually provide some impetus for the major. 

Technical levels to watch

From current levels previous strong resistance near 0.7615-10 area now seems to act as immediate support below which the corrective move is likely to get extended further towards 50-day SMA support near 0.7585 region. Meanwhile on the upside, 0.7650 now becomes immediate barrier, which if cleared seems to boost the pair immediately towards 0.7685 resistance.