AUD/USD drops to fresh session low at 0.7460

The AUD/USD pair once again faced rejection near 0.7500 psychological mark and turned sharply lower, albeit held Tuesday's trading range.

Currently trading around 0.7460 region, testing session lows, the pair ran through fresh offers during European session amid plunging iron-ore prices after Chinese exchanges lowered the daily trading limit and raised margin requirements in an effort to curb speculation. Being Australia’s top export product, steep drop in iron-ore prices is weighing on Australian Dollar. 

The pair has failed to benefit from the prevalent risk-on sentiment led by growing optimism that OPEC members will be able to reach an agreement to curb output. 

Traders now look forward to US economic docket, featuring ADP report on private sector employment, Fed's preferred inflation gauge - Core PCE Price Index, Chicago PMI and pending home sales data ahead of speech from Federal Reserve Governor Jerome Powell for fresh impetus during NA trading session. 

Technical levels to watch

A follow through selling pressure below 0.7450 immediate support might now drag the pair below 0.7430 intermediate support towards testing 0.7400 handle. On the upside, recovery above 0.7480 might continue to confront strong resistance near 0.7500 mark, which if conquered might trigger a short-covering rally towards the very important 200-day SMA resistance near 0.7525 region.