AUD/USD keeps the bearish bias going

Pressured by the upsurge witnessed in USD amid positive ADP data, the AUD/USD refreshed its lowest level since late January at 0.7530. The pair has been spending the last few hours in a narrow range consolidating its losses.

DXY supported by ADP

Higher-yielding currencies, such as the Aussie, continue to stay under heavy pressure as US Treasury bond yields keep the demand for the greenback high in the thick of growing bets for an eventual Fed rate hike action. Furthermore, Comex copper prices remain in negative territory amid concerns over Chinese economic health as reflected by the trade data earlier this week.

Private-sector employment in the U.S. increased by 298,000 jobs from January to February according to the official February ADP National Employment Report.The probability of a March rate hike jumped to 91% following the data and DXY leaped above 102. The positive ADP numbers could change the expectations of Friday's NFP data as, in recent months, the correlation between ADP and NFP has improved. 

Technical levels to watch

As the moment, the AUD/USD is down 0.65% at 0.7540 facing the first resistance at 0.7600 (psychological level/50-DMA), ahead of 0.7650 (20-DMA), and 10.7700 (psychological level/Mar. 1 high). On the downside, the first support is aligned at 0.7515 (Fib. 38.2% of Jan. to late Feb. uptrend) followed by 0.7495 (100-DMA) and finally 0.7450 (Fib. 50%).