AUD/USD off lows, still struggling near 0.7600 mark ahead of US data
| • Persistent USD weakness helps bounce off 4-month lows.
• Tumbling US bond yields lending additional support.
• Focus remains on important US macro data.
The AUD/USD pair has managed to recover some of its early lost ground to 4-month lows and might now be looking to build on the rebound beyond the 0.7600 handle.
Investors seem to have digested today's disappointing Australian wages data, with a fresh wave of greenback selling pressure helping the pair to bounce off lows. In fact, the key US Dollar Index tumbled to its lowest level in three weeks, below mid-93.00s, and has been one of the key factors lending some support to the pair.
Adding to this, a sharp slide in the US Treasury bond yields, which tends to boost demand for higher-yielding currencies - like the Aussie, further collaborated to the pair's modest recovery of around 25-30 pips from session lows.
Meanwhile, the ongoing slump in commodity space did little to extend any additional support to the commodity-linked Australian Dollar, with the pair struggling to gain any follow through traction beyond the 0.7600 handle.
Today's US economic docket features the latest inflation figures and monthly retail sales data, and should help investors determine the pair's next leg of directional move.
Technical levels to watch
Any follow through recovery move is likely to confront fresh supply near the 0.7625 region, above which the pair is likely to dart towards mid-0.7600s ahead of 0.7670-75 horizontal hurdle.
On the flip side, weakness below 0.7575 level would turn the pair vulnerable to extend its downward trajectory towards 0.7540-35 intermediate support en-route the key 0.75 psychological 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.