AUD/USD looking to extend the recovery beyond 0.6900 handle
| • US-China trade tensions keep a lid on the overnight attempted recovery.
• A modest bounce in the US bond yields/USD further collaborates to cap.
• Traders now eye US durable goods orders data for some fresh impetus.
The AUD/USD pair met with some fresh supply during the Asian session on Friday and eroded a part of the overnight modest recovery from closer to multi-month lows, albeit the downtick remained limited.
Thursday's intraday slump in the US Treasury bond yields - led by the global flight to safety and dismal US manufacturing PMI, prompted traders to take some profits off the US Dollar long positions and turned out to be one of the key factors behind the pair's late recovery during the US trading session.
The US manufacturing activity posted its weakest pace of growth in almost a decade and indicated that a sharp slowdown in economic growth was underway, dragging yield on the benchmark 10-year government note to its lowest level since October 2017 and exerted some pressure on the greenback.
After the overnight pullback from two-year highs, the buck held steady on Friday and was being supported by a goodish rebound in the US bond yields. This coupled with growing fears about a full-blown US-China trade war further collaborated towards capping gains for the China-proxy Australian Dollar.
The pair struggled to extend the recovery beyond the 0.6900 handle, though a slight improvement in the global risk sentiment extended some support and helped limit any deeper losses, at least for the time being.
Moving ahead, today's US economic docket - highlighting the release of durable goods orders data, will now be looked upon for a fresh impetus and grab some short-term trading opportunities on the last trading day of the week.
Technical levels to watch
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.