AUD/USD spikes to 2-1/2 week tops, closer to 0.79 handle
|A fresh wave of greenback selling pressure during early NA session pushed the AUD/USD pair closer to 2-1/2 week tops, closer to the 0.7900 handle.
A sharp fall in the US Treasury bond yields, led by today's slightly disappointing US CPI and monthly retail sales data, was seen weighing heavily on the US Dollar and benefitting higher-yielding currencies - like the Aussie.
• US CPI and retail sales support December rate hike story - ING
Apart from the broad based USD sell-off, possibilities of some stops being taken out on a decisive move beyond mid-0.7800s might have also collaborated to the pair's sharp spike over the past hour or so.
The pair has now recovered over 125-pips from 2-1/2 month lows, touched last Friday, and a follow through up-move, led by some additional short-covering on the last trading day of the week, now seems a distinct possibility.
• AUD/USD: Decline have hit a pause - Westpac
Today's US economic docket also features the release of Prelim UoM Consumer Sentiment, which along with Fedspeaks would now be looked upon for some fresh impetus.
Technical levels to watch
The ongoing momentum seems strong enough to continue lifting the pair towards the 0.7900 handle en-route 50-day SMA hurdle near the 0.7915 region.
On the downside, 0.7860-50 area becomes immediate support to defend, which if broken could drag the pair towards 0.7825 intermediate support ahead of 100-day SMA near the 0.7800 handle.
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