AUD/USD struggles to break through 0.7600 barrier
| • USD up-move losses steam post US data.
• Surging US bond yields still capping.
• Key US tax bill vote holds the key.
The AUD/USD pair continued with its struggle to move past the 0.7600 handle and remained confined within 15-20 pips narrow trading range.
The pair caught some fresh bids during the early NA session and was being supported by a modest US Dollar retracement, led by today's softer US economic data - weekly jobless claims, Philly Fed manufacturing index and import prices.
Meanwhile, the market seems to have largely negated better-than-expected US industrial production data, with a mildly positive sentiment around commodity space, especially copper, lending some support to the commodity-linked Australian Dollar.
However, surging US Treasury bond yields, amid firming December Fed rate hike expectations, might continue to keep a lid on any meaningful up-move for higher-yielding currencies - like the Aussie.
Moving ahead, investors' focus would remain glued to the upcoming vote on a highly-anticipated US tax bill, due later today, which would influence the USD price dynamics in the near-term and eventually provide some fresh directional impetus for the major.
Technical levels to watch
Momentum beyond the 0.7600 handle is likely to confront fresh supply near the 0.7620 region, above which the pair is likely to head towards testing its next hurdle near 0.7655-60 zone.
On the flip side, the 0.7580-70 region now seems to have emerged as immediate support, which if broken decisively would turn the pair vulnerable to head towards testing the key 0.75 psychological mark with some intermediate support near the 0.7540 region.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.