AUD/USD clings to recovery gains, comfortable above 0.77 handle
| • Trade war fears prompt some fresh USD weakness and help regain positive traction.
• Weaker commodities offset by the ongoing slide in the US bond yields and remain supportive.
• Traders now eye US durable goods order data in order to grab some short-term opportunities.
The AUD/USD pair gained some fresh positive traction on Friday and recovered a part of previous session's slump from weekly tops.
The pair continues finding decent buying interest near the 0.7685-80 region and was now being supported by some renewed US Dollar selling bias, amid rising trade tensions following the US President Donald Trump new anti-China tariffs.
Meanwhile, a negative tone around commodity space, which tends to undermine demand for the commodity-linked Australian Dollar, was largely negated by a follow-through downfall in the US Treasury bond yields and remained supportive of the bid tone surrounding higher-yielding currencies - like the Aussie.
It, however, remains to be seen if the pair is able to build on the positive momentum further beyond the 0.7730 supply zone or the up-move once again fizzle out at higher levels. Traders now look forward to the release of US durable goods orders in order to grab some short-term opportunities on the last trading day of the week.
Technical levels to watch
On a sustained move above 0.7730 immediate hurdle, the pair seems to head back towards challenging the 0.7765-70 supply zone before eventually darting towards the very important 200-day SMA barrier near the 0.7800 handle.
On the flip side, 0.7685-80 zone might continue to lend immediate support, which if broken might now turn the pair vulnerable to slide further, initially towards 0.7640-35 intermediate support en-route the 0.7600 round figure mark.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.