AUD/USD reverses tepid recovery gains, turns flat at 0.7260

The AUD/USD pair failed to build on recovery move from yesterday's 6-month low and has now reversed all of its daily gains. 

Currently trading around 0.7260-55 band, the pair has failed to gain any respite from recovery in commodity prices, especially Copper, which tends to boost demand for commodity-linked currencies - like the Aussie. 

Moreover, a broad based greenback retracement, with the broader US Dollar Index witnessing a mild profit taking slide from the highest level since December 2002 touched on Tuesday, did little to lend any support to the pair's mild recovery from the lowest level since early June. 

Ahead of the holiday season, trading activity is likely to remain subdued amid thin liquidity conditions, albeit short-term traders might take some cues from today's release of existing home sales data from the US. 

Technical levels to watch

Weakness below 0.7250 level is likely to get extended towards 0.7225-20 area (yesterday's multi-month low) below which the pair is likely to break through 0.7200 handle and head towards its next support near 0.7150 region. On the upside, momentum above session peak resistance near 0.7275 level might trigger a short-term rally, initially towards 0.7300 handle ahead of 0.7330 resistance area.