AUD/USD sticks to gains near monthly tops, around mid-0.7200s
| • Remains well bid for the third consecutive session amid subdued USD demand.
• Mixed US economic data does little to revive USD demand and hinder the up-move.
The AUD/USD pair maintained its strong bid tone through the early North-American session and held near 2-1/2 week tops, just above mid-0.7200s.
With investors looking past the latest escalation of the US-China trade spat, the China-proxy Australian Dollar continued scaling higher against its American counterpart for the third consecutive session on Wednesday.
The positive momentum was further supported some technical buying, especially after yesterday's bullish break through the 0.7200 handle, and positive copper prices, which tends to underpin demand for commodity-linked currencies - like the Aussie.
Meanwhile, a goodish US Dollar rebound, primarily led by Brexit headlines-led sudden fall in the British Pound, kept a lid on any follow-through positive momentum. The USD bulls also took cues from better-than-expected housing starts and current account deficit figures, though were largely negated by weaker building permits data.
This coupled with a modest retracement in the US Treasury bond yields also did little to help the greenback build on its attempted recovery and remained supportive of the pair's positive momentum to the highest level since August 31.
Technical levels to watch
Immediate resistance is pegged near the 0.7270 horizontal level, above which the pair seems all set to aim towards reclaiming the 0.7300 handle - nearing 50-day SMA. On the flip side, any meaningful slide is likely to find support near the 0.7210-0.7200 region, which if broken might turn the pair vulnerable to slide back towards the 0.7145-40 strong support.
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