AUD/USD struggles near 0.75 handle, Powell/Trump in focus

   •  Disappointing Aussie retail sales data prompt some fresh selling on Tuesday.
   •  Upbeat Chinese trade balance data does little to lend any meaningful support.
   •  Persistent USD buying interest exerts additional pressure ahead of Powell/Trump.

The AUD/USD pair held on to its weaker tone for the second consecutive session and is currently hovering around the key 0.75 psychological mark. 

The pair met with some fresh supply and reversed early uptick to a session high level of 0.7528 following the release of disappointing Australian retail sales data, which remained unchanged in March as compared to a 0.6% growth reported in the previous month.

The selling pressure, however, abated after Chinese trade data came in to show a larger-than-expected surplus in USD terms, reaching $22.8 billion in April as against a deficit of $5 billion in March, and provided a temporary respite to the China-proxy Australian Dollar. 

Meanwhile, persistent greenback buying interest, with the key US Dollar Index standing tall near yearly tops, did little to assist and might continue to keep a lid on any meaningful recovery attempt from closer to 11-month lows.

Investors now look forward to the Fed Chair Jerome Powell's scheduled speech for some fresh insight over the central bank's monetary policy outlook, which might eventually influence demand for higher-yielding currencies - like the Aussie.

Later in the day, the US President Donald Trump's decision on Iran nuclear deal could also infuse volatility across global financial markets and help traders grab some short-term opportunities. 

Technical levels to watch

Any subsequent weakness below the 0.75 handle is likely to find support near the 0.7475-70 region, which if broken now seems to accelerate the fall and drag the pair towards 0.7430-25 intermediate support en-route the 0.7400 mark.

On the upside, the 0.7530-40 region now seems to have emerged as an immediate hurdle, above which the pair is likely to witness a short-covering bounce and move towards reclaiming the 0.7600 handle with 0.7575-80 zone acting as an intermediate resistance.