AUD/USD bulls making a fresh attempt to conquer 0.80 handle

Haresh Menghani FXStreet

• Investors look past today’s mixed Aussie/Chinese data.
• Renewed USD weakness helps regain traction.
• Surging US bond yields does little to stall the up-move.

The AUD/USD pair continued rising steadily through the mid-European session and is currently placed at the top end of its daily trading range.

The pair has been finding decent support near the 0.7940-35 region over the past three trading session. With markets looking past today’s mixed Aussie employment details and Chinese macro data, renewed US Dollar weakness was seen as one of the key factors behind today's up-move.

Meanwhile, the latest leg of upsurge in the US Treasury bond yields, 2-yr yields breaking out to the highest level since 2008 and 10-yr yields holding at 2.60%, the highest since March 2017, did little to revive the USD demand and hinder the pair's momentum back closer to the key 0.80 mark, 4-month tops.

It, however, remains to be seen if bulls are able to maintain the dominant position or the pair continues to struggle in sustaining its strength above the mentioned psychological barrier.

Next in focus would be the US economic releases - housing market data, Philly Fed Manufacturing Index and initial weekly jobless claims, which would be looked upon for some fresh trading impetus.

Technical levels to watch

On a sustained move beyond the 0.80 handle, the pair is likely to aim towards surpassing 0.8022 level (yesterday's high) before eventaully darting towards its next major hurdle near mid-0.8000s.

Alternatively, rejection at the mentioned barrier, leading to a subsequent break below 0.7965 horizontal support, might prompt some additional profit-taking and drag the pair below 0.7940-35 area back towards the 0.7900 handle.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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