AUD/USD flirting with yearly lows, 0.75 mark back on sight

   •  RBA announcement turns out to be a non-event for the market.
   •  The US bond yields underpin USD demand and weighing. 
   •  Traders eye US ISM PMI ahead of Chinese PMI for some impetus.

The AUD/USD pair surrendered early modest recovery gains and is currently placed at the lower end of its daily trading range, around the 0.7525 region or YTD lows.

The pair initially ticked higher to an intraday high level of 0.7546 and had a rather muted reaction to the RBA's widely expected decision to leave interest rates unchanged for a record 19th straight meeting. Meanwhile, a follow-through US Dollar buying interest, further supported by a goodish pickup in the US Treasury bond yields prompted some fresh selling around higher-yielding currencies - like the Aussie. 

Adding to this, weaker tone around commodity space, especially copper also did little to lend any support to the commodity-linked Australian Dollar. The latest leg of sharp fall over the past hour or so could also be attributed to softer Australia April commodity prices, coming in at -1.4%y/y vs a downwardly revised previous month's reading of -2.8%. 

Traders now look forward to the release of US ISM manufacturing PMI, ahead of Wednesday's Chinese Caixin Manufacturing PMI for some short-term trading impetus. The key focus, however, would be on the highly anticipated FOMC announcement on Wednesday and Friday's US NFP report, which will help investors determine the pair's next leg of directional move. 

Technical levels to watch

A follow-through selling pressure has the potential to continue dragging the pair further towards the key 0.75 psychological mark, which if broken might turn the pair vulnerable to extend its downside in the near-term.

On the flip side, any recovery attempts might continue to confront fresh supply near the 0.7545-50 region, above which a bout of short-covering could lift the pair further towards reclaiming the 0.7600 handle.