• Trade war fears prompt some fresh USD weakness and help regain positive traction.
• Weaker commodities offset by the ongoing slide in the US bond yields and remain supportive.
• Traders now eye US durable goods order data in order to grab some short-term opportunities.
The AUD/USD pair gained some fresh positive traction on Friday and recovered a part of previous session's slump from weekly tops.
The pair continues finding decent buying interest near the 0.7685-80 region and was now being supported by some renewed US Dollar selling bias, amid rising trade tensions following the US President Donald Trump new anti-China tariffs.
Meanwhile, a negative tone around commodity space, which tends to undermine demand for the commodity-linked Australian Dollar, was largely negated by a follow-through downfall in the US Treasury bond yields and remained supportive of the bid tone surrounding higher-yielding currencies - like the Aussie.
It, however, remains to be seen if the pair is able to build on the positive momentum further beyond the 0.7730 supply zone or the up-move once again fizzle out at higher levels. Traders now look forward to the release of US durable goods orders in order to grab some short-term opportunities on the last trading day of the week.
Technical levels to watch
On a sustained move above 0.7730 immediate hurdle, the pair seems to head back towards challenging the 0.7765-70 supply zone before eventually darting towards the very important 200-day SMA barrier near the 0.7800 handle.
On the flip side, 0.7685-80 zone might continue to lend immediate support, which if broken might now turn the pair vulnerable to slide further, initially towards 0.7640-35 intermediate support en-route the 0.7600 round figure mark.
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