AUD/USD refreshes session tops, eyeing a move beyond 0.7300 mark

The AUD/USD pair edged higher through the Asian session and refreshed daily tops in the last hour, with bulls now eyeing a sustained move beyond the 0.7300 mark.

Following an early dip to the 0.7265 region, the pair managed to regain some positive traction on the last trading day of the week and recovered further from four-day lows touched in the previous session. The uptick was supported by a combination of factors – upbeat Australian macro data and a weaker tone surrounding the US dollar.

The preliminary data released this Friday showed Australian retail sales rebounded by 1.6% in October following a decline in September and August. The reading far exceeded expectations for a modest 0.3% growth and bolstered hopes for the broader economic recovery in the current quarter, which, in turn, provided a modest lift to the aussie.

On the other hand, the US dollar was being pressured by the US Treasury Secretary Steven Mnuchin's decision to end pandemic relief for struggling businesses. This comes amid worries about the economic fallout from the imposition of new COVID-19 restrictions in several US states and further fueled speculations of additional monetary easing by the Fed.

Dovish Fed expectations were evident from the ongoing slide in the US Treasury bond yields, which undermined the greenback and remained supportive of the AUD/USD pair's modest uptick. That said, a softer risk tone – as depicted by a fresh leg down in the US equity futures – might cap gains for the perceived riskier Australian dollar.

In the absence of any major market-moving economic releases from the US, the AUD/USD pair remains at the mercy of the USD price dynamics. This, along with the broader market risk sentiment and developments surrounding the coronavirus saga, should assist traders to grab some meaningful opportunities.

Technical levels to watch