AUD/USD remains confined in a narrow trading range, above mid-0.7500s
| • USD weakness prevails post weekly jobless claims but fails to provide any impetus.
• Cross-driven weakness now seemed to be only factors keeping a lid on any up-move.
The AUD/USD pair extended its directionless price-action through the early NA session and remained confined in a narrow trading band, just above mid-0.7500s.
The pair struggled to build on overnight rebound from an intraday low level of 0.7523 and has also failed to benefit from the ongoing US Dollar profit-taking slide, led by dovish sounding FOMC meeting minutes.
Even a weaker tone around the US Treasury bond yields, coupled with the disappointing release of US initial weekly jobless claims data, which did little to revive the USD demand, failed to provide any fresh impetus.
Traders also seemed to have shrugged off the prevalent positive trading sentiment around commodity space, especially copper, which tends to underpin demand for the commodity-linked Australian Dollar.
Meanwhile, some cross-driven weakness, stemming out of a heavily offered tone surrounding the AUD/JPY cross now seemed to be the only factor keeping a lid on any meaningful up-move for the major. Hence, it would be prudent to wait for a strong follow-through move in either direction before positioning for the pair's trajectory during the NY trading session.
Today's US economic docket also features the release of existing home sales data, which along with a scheduled speech by Atlanta President Raphael Bostic will now be looked upon to grab some short-term opportunities.
Technical levels to watch
Immediate resistance is pegged near the 0.7580 region, above which the pair is likely to aim towards surpassing the 0.7600 handle and head towards testing its next hurdle near the 0.7645-50 zone.
On the flip side, sustained weakness below 0.7540-35 could get extended back towards the key 0.7500 psychological mark before the pair eventually drops to retest 0.7470-65 support area.
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