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    AUD/USD reversal from 0.7500 gains momentum

    The AUD/USD pair failed to sustain its strength to 0.7500 handle, above 50-day SMA, and reversed sharply to currently trade below 0.7450 level, near session low. A sudden bout of US Dollar buying interest triggered a sharp reversal for the AUD/USD pair that had risen to a 5-week high, printing monthly high level of 0.7504, earlier during Asian session.The pair witnessed selling pressure at higher levels after the release of some disappointing Chinese inflation data, especially weak PPI numbers that is a gauge of future consumer inflation. China's CPI for May came-in at 2.0% y/y versus 2.2% expected and 2.3% recorded previously. Meanwhile, the PPI - which measures price paid at factory gates, printed -2.8% as compared to -3.1% expected and -3.4% recorded in May. Going forward, being Australia's biggest trading partner, Chinese economic data would remain key driver for the near-term momentum for the AUD/USD major as focus now shifts to important Chinese releases, including Industrial Production, Fixed Asset Investment and Retail Sales data, slated for release during the weekend. Technical levels to watch Weakness below 0.7430 is likely to force the pair to test 100-day SMA support near 0.7380 region, before heading back towards 0.7315-0.7300 support area. Alternatively, momentum back above 50-day SMA resistance near 0.7465-70 region, leading to a subsequent strength above 0.7500 handle, now seems to pave way for continuation of the pair's near-term upward trajectory towards its next round figure mark resistance near 0.7600 level. 

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