AUD/USD trims RBA-led gains, upside remains capped near 0.7650

Having posted a session high level of 0.7654, the AUD/USD pair trimmed some of its RBA-led gains to currently trade around 0.7630-25 band ahead of the US economic releases.

Today's US economic calendar features the release of ISM non-manufacturing PMI, which is expected to have ticked higher to 55.7 in August as compared to previous month's 55.5. 

Meanwhile, the Aussie has been gaining traction after RBA left its monetary policy unchanged and did not provide any explicit clues of further easing in the near-term. Adding to this, a lower-than-expected Australian current account deficit helped the major to maintain its bid tone. 

Despite of its up-move for fifth straight session, the pair has failed to gain further traction and continues to confront some supply pressure near 0.7650 region. Hence, only a highly disappointing US economic release would provide the required momentum to lift the pair beyond this strong resistance area. 

Technical levels to watch

Omkar Godbole, Editor and Analyst at FXStreet, notes, "Rising trend line drawn from May 30 low and July 27 low comes around 0.7090. Despite Aussie’s rebound last week from 100-+DMA support, the subsequent failure on Friday and Monday to hold/break above the rising trend line suggests the odds of a similar move today and a fall back to 0.7540 levels are high. On the higher side, we need a day end close above 0.7616 as that would signal bearish invalidation."