AUD/USD corrects from 9-week peak on profit-taking

Following yesterday's strong up-surge to nine-week highs, the AUD/USD pair witnessed a mild profit taking slide but held comfortably above 0.7500 psychological mark. 

The greenback staged a goodish recovery on Wednesday following overnight slump triggered by President-elect Donald Trump's warning on a stronger dollar. The US Dollar recovery is being supported rising US treasury bond yields, which tends to drive flows away from higher-yielding currencies, and has been a key factor collaborating to the pair's retracement from the highest level since mid-Dec. 

Looking at the broader picture, Wednesday's minor corrective slide could be categorized as consolidation amid positive sentiment around commodity space, especially Copper, which usually underpins demand for commodity-linked currencies - like the Aussie. 

Moving ahead, investors on Wednesday will now focus on a fresh batch of US macro releases, including CPI print for December, which if adds on to prospects of higher inflationary pressure in the US economy would revive expectations of further Fed rate-hike action and attract fresh selling pressure around the major. Also in focus would be the Fed Chair Janet Yellen's speech, scheduled later during NY trading session.

Technical levels to watch

Weakness below 0.7550 level is likely to get extended towards 0.7525 horizontal support before the pair eventually drops back towards the very important 200-day SMA, resistance turned support, near 0.75 psychological mark. 

On the flip side, sustained move above multi-week highs resistance near 0.7565-70 area is likely to accelerate the up-move towards 0.7600 handle, en-route 0.7625 horizontal resistance.