AUD/USD sits at session tops, inching closer to mid-0.7400s
| • The USD profit-taking slide remains unabated despite resurgent US bond yields.
• Positive commodities provide an additional boost to the commodity-linked Aussie.
• Technical factors remain supportive of the ongoing recovery from multi-month lows.
The AUD/USD pair maintained its bid tone through the early North-American session and was now seen consolidating daily gains, just below session tops.
The US Dollar extended its profit-taking slide from 11-month tops and failed to gain any respite from resurgent US Treasury bond yields, which was eventually seen driving the pair higher for the second consecutive session.
This coupled with a positive trading sentiment around commodity prices, especially copper, provided an additional boost to the commodity-linked Australian Dollar and further collaborated to the pair's ongoing rebound from YTD lows set yesterday.
The pair easily surpassed the 0.7400 handle, taking along short-term trading stops, and hence, technical buying could also be one of the key factors supportive of the goodish pickup on the last trading day of the week.
A relatively thin US economic docket, featuring the release of flash manufacturing and services PMI, seems unlikely to provide any meaningful impetus but might still assist traders to grab some short-term opportunities.
Technical levels to watch
Immediate resistance is pegged near the 0.7445-50 region, above which the pair is likely to aim towards reclaiming the key 0.7500 psychological mark. On the flip side, the 0.7400 handle now seems to protect the immediate downside, which if broken might turn the pair vulnerable to head back towards retesting multi-month lows support near the 0.7350-45 region before eventually dropping to test the 0.7300 round figure mark.
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