AUD/USD recovers early lost ground, flat-lined above mid-0.7700s
|- AUD/USD attracted some dip-buying near the 0.7730 region, albeit lacked any follow-through.
- Some follow-through USD buying, a softer risk tone might keep a lid on any meaningful upside.
- Investors now eye US Retail Sales for some impetus ahead of Aussie jobs report on Thursday.
The AUD/USD pair gained some traction during the early European session and refreshed daily tops, around the 0.7770 region in the last hour.
The pair stalled the previous day's retracement slide from five-week tops – levels beyond the 0.7800 mark – and attracted some dip-buying on Wednesday. The intraday bounce of around 40 pips from the 0.7730 region lacked any obvious fundamental catalyst and runs the risk of fizzling out rather quickly.
The US dollar recovered further from three-week lows touched on Tuesday and seemed rather unaffected by a modest pullback in the US Treasury bond yields. A mildly softer tone around the equity markets benefitted the USD's safe-haven status and might keep a lid on any further gains for the perceived riskier aussie.
This makes it prudent to wait for some strong follow-through buying before positioning for any further appreciating move for the AUD/USD pair. Market participants now look forward to the US economic docket, highlighting the release of monthly Retail Sales data for some impetus during the early North American session.
Apart from this, the US bond yields might influence the USD price dynamics, which, along with the broader market risk sentiment, might produce some trading opportunities. That said, the AUD/USD pair is unlikely to move in any firm direction ahead of Thursday's important release of Australian monthly employment details.
Technical levels to watch
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