• Struggles to build on post-FOMC minutes rebound, despite supportive factors.
• Cross-driven weakness keeps a lid on any meaningful up-move for the major.
• Traders eye Fedspeaks and second-tier US economic data for some impetus.
The AUD/USD pair struggled for a firm direction and seesawed between tepid gains/minor losses through the early European session on Thursday.
The pair quickly reversed an Asian session dip to session low level of 0.7542 but struggled to build on its overnight rebound led by dovish looking FOMC meeting minutes. The US Dollar witnessed some profit-taking after the latest minutes suggested that the Fed is not in a hurry to raise interest rates.
The expectations were evident from a follow-through retracement in the US Treasury bond yields, which coupled with the prevalent positive tone around commodity space, especially copper, extended some support to higher-yielding/commodity-linked currencies - like the Aussie.
Despite a combination of supportive factors, bulls seemed lacking strong conviction, with some cross-driven weakness, stemming out of the ongoing slump in the AUD/JPY pair, keeping a lid on any meaningful up-move.
Moving ahead, traders now look forward to speeches by influential FOMC members, which along with second-tier US economic releases, due later during the early NA session, might assist grab some short-term opportunities.
Technical levels to watch
Immediate support is pegged near 0.7525 area, below which the pair seems more likely to break below the key 0.75 psychological mark and head towards testing its next support near the 0.7475-70 region. On the upside, momentum beyond the 0.7580 immediate resistance now seems to lift the pair further beyond the 0.7600 handle towards its next major hurdle near the 0.7645-50 zone.
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