• Once again faces rejection ahead of the 0.77 handle.
• Surging US bond yields adding to the downward pressure.
• Ignores subdued USD/positive commodity prices.
The AUD/USD pair extended its rejection slide from just ahead of the 0.7700 handle and refreshed session low in the last hour.
Against the backdrop of RBA's dovish assessment of the economy, in its quarterly Statement on Monetary Policy (SOMP), a sharp uptick in the US Treasury bond yields was seen exerting additional downward pressure on higher-yielding currencies - like the Aussie.
Meanwhile, the latest disappointment over the long-awaited US tax legislation kept the US Dollar bulls on the defensive but failed to lend any support and stall the pair's fall to the 0.7660 region.
The market even seems to have ignored a mildly positive tone around commodity space, especially copper, with the US bond yield dynamics turning out to be an exclusive driver of the pair's movement on the last trading day of the week.
Later during the NA session, the US economic docket, highlighting the release of Prelim UoM Consumer Sentiment Index might provide some opportunities for short-term traders.
Technical levels to watch
Immediate support is pegged near the 0.7650-40 region, below which the pair is likely to accelerate the slide towards the 0.7600 handle en-route the 0.7580-75 strong support.
On the upside, the 0.7690-0.7700 region remains the immediate strong hurdle, which if conquered might trigger a short-covering bounce towards 0.7750-55 horizontal hurdle.
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