AUD/USD remains heavily offered, plummets to weekly lows

The AUD/USD pair remained under intense selling pressure and extended previous session's rejection move from the very important 200-day SMA. 

Currently trading around 0.7470 region, the pair has now reversed all of its weekly gains amid sharp slide in copper prices, which tends to weigh on the commodity-linked currencies, including the Australian Dollar. 

Adding to this, a modest recovery in the US treasury bond yields lifted the key US Dollar Index back closer to the 99.00 handle and also collaborated the heavily offered tone surrounding the major. 

Meanwhile, possibilities of some stops being triggered, on a sustained break below the key 0.75 psychological mark, might have further aggravated the selling pressure and drove the pair sharply lower in the past hour or so.

Focus remains on today's key event risk - the much-awaited FOMC announcement, later during the NY session, where although the central bank is widely expected to leave its monetary policy unchanged but would influence investors' expectations for further Fed rate-hike actions and eventually provide fresh impetus for higher-yielding currencies - like the Aussie. 

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Heading into the big event, US economic docket, featuring the release of ADP report and ISM non-manufacturing PMI, would also be looked upon for some immediate respite.

Technical outlook

The ongoing bearish momentum is strong enough to continue dragging the pair further towards multi-month lows support near 0.7450-40 zone, below which a fresh leg of weakness could drag the pair below the 0.7400 handle towards its next support near 0.7375-70 area.

On the upside, any recovery attempt back above the 0.75 mark now seems to confront strong supply near 0.7525-30 region, which if conquered could lift the pair beyond the 200-day SMA hurdle near mid-0.7500s towards 50-day SMA hurdle near 0.7585 region.