AUD/USD extends overnight recovery move from 6-month lows
| • Weaker US bond yields help gain traction for the second straight session.
• Positive commodity prices remain supportive of the recovery move.
• US PPI print eyed for fresh impetus ahead of RBA’s Lowe.
The AUD/USD pair traded with a positive bias for the second consecutive session and was seen building on previous session's recovery move from 6-month lows.
The pair has been finding decent support near the key 0.7500 psychological mark and further benefitted from a subdued US Dollar price action. A softer tone surrounding the US Treasury bond yields kept the USD bulls on the defensive and prompted a follow through short-covering trade around higher-yielding currencies - like the Aussie.
Adding to this, a mildly positive trading sentiment around commodity space provided an additional boost to the commodity-linked Australian Dollar and remained supportive of the pair's modest recovery move to mid-0.7500s.
Later during the NA session, the US PPI print would now be looked upon for some short-term trading impetus ahead of the RBA Governor Philip Lowe's speech during early Asian session on Wednesday. The key focus, however, would remain on the highly anticipated FOMC announcement, during the NY session on Wednesday, which would help investors determine the pair's next leg of directional move.
Technical levels to watch
Immediate support remains near the 0.75 handle, below which the pair is likely to accelerate the slide towards 0.7475 intermediate support en-route 0.7450-45 support area.
On the upside, a follow-through recovery beyond 0.7565 level should assist the pair to reclaim the 0.7600 handle before eventually lifting it to 0.7625-30 supply zone.
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