AUD/USD consolidates in a range above 0.75 mark, Fedspeaks awaited
| • Subdued USD price action does little to provide any fresh impetus.
• Traders now eye Fed speakers for some short-term opportunities.
The AUD/USD pair now seems to have entered a consolidation phase and oscillated within a 15-20 pips narrow trading range through the Asian session on Friday.
On Thursday, the pair stalled this week's corrective bounce from fresh 11-month lows and pulled back from 3-day tops, around mid-0.7500s, albeit managed to hold its neck just above the key 0.75 psychological mark.
A continuous rise in the US Treasury bond yields, coupled with incoming US economic data remained supportive of the ongoing US Dollar upsurge to fresh yearly tops and was seen as one of the key factors capping any meaningful gains for higher-yielding currencies - like the Aussie.
Adding to the recent string of relatively stronger data, the Philly Fed Manufacturing Index surpassed even the most optimistic estimates and jumped to 34.4 in May, the highest reading in a year.
Nothing relevant was due for release from the Australian economic docket, with a subdued USD price action doing little to provide any fresh impetus and leading to a range-bound move on the last trading day of the week.
Moving ahead, traders now look forward to scheduled speeches by influential FOMC member - Cleveland Fed President Loretta Mester and Fed Governor Lael Brainard, for some fresh clues over the central bank's monetary policy outlook, which might influence the USD price-dynamics and produce some short-term trading opportunities.
Technical levels to watch
Weakness below the 0.75 handle is likely to find support near the 0.7475-70 area, which if broken might prompt some fresh selling and accelerate the slide back towards multi-month lows support near the 0.7415-10 region.
On the upside, sustained momentum beyond mid-0.7500s might now assist the pair to continue with its recovery trend and aim towards reclaiming the 0.7600 handle before eventually darting towards 0.7645-50 supply zone.
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