AUD/USD retraces from multi-week highs

The AUD/USD pair erased all of its gains to the highest level since August 16 and turned back below 0.7700 handle to currently trade just few pips away from session low around 0.7670-80 band.

The release of weekly jobless claims data from the US attracted some USD buying interest across the board and forced that AUD/USD bulls to take some profit off the table after the pair's relentless up-surge of nearly 250-pips from 100-day SMA support touched in the previous week. 

Moreover, traders also seem to reposition themselves ahead of Chinese inflation data on Friday, which has the potential to trigger some volatile moves in the AUD/USD major. 

Technical levels to watch

A follow through selling pressure below 0.7665 level is likely to accelerate the slide even below Wednesday's low support near 0.7650 towards a previous strong resistance, now turned important support near 0.7615-10 region. Meanwhile on the upside, the pair now needs to move back above 0.7685 in order to make a fresh attempt to reclaim 0.7700 handle above which a fresh leg of up-move should assist the pair towards 0.7750-55 important resistance.