AUD/USD remains capped below 0.7600 on China services PMI

The AUD/USD pair maintains the overnight offered tone and hovers near daily troughs following the release of dismal Chinese services PMI report.

AUD/USD back below 0.7600

Currently, the AUD/USD pair drops -0.26% to trade at fresh session lows of 0.7590, having failed to resist above 0.76 handle. The RBA-backed vertical rise in the  Aussie lost pace near 0.7640 region in the US last session, with the major now extending the retreat below 0.76 barrier, as poor Chinese services sector activity report failed to provide support to the AUD bulls. China's Caixin PMIs services came in at 51.7 vs 52.7 last, with the composite at 51.9 vs 50.3 last.

The AUD/USD pair remains under pressure this session, as the US dollar attempts a minor corrective rally against its major peers following yesterday’s sharp sell-off. While rising yield differential also favour the greenback at the moment, keeping the bearish pressure intact on the pair.

Looking ahead, attention turns towards the US ADP jobs and ISM services data lined up for release later today, ahead of the highly influential NFP data due to be published on Friday.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7638 (Aug 2 high) above which gains could be extended to the next hurdle located at 0.7667 (daily R1). On the flip side, the immediate support located at 0.7584 (5-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7546/36 (20 & 10-DMA).