• Struggles to build on the positive momentum amid resurgent USD demand.
• A sudden fall in the US bond yields/positive commodities helps limit downside.
The AUD/USD pair surrendered a major part of its early gains to 3-day tops and is now headed towards the lower end of its daily trading range.
The pair struggled to build on the early uptick to intraday highs near mid-0.7500s, supported by a beat in the number of new job additions in the Australian economy, and was now being weighed down by resurgent US Dollar demand.
After a brief dip earlier today, the USD caught some fresh bids during the mid-European session and was seen as one of the key factors prompting some fresh selling around the major.
However, a sudden pull-back in the US Treasury bond yields extended some support to higher-yielding currencies - like the Aussie. This coupled with a positive trading sentiment around commodity space, especially copper, underpinned the commodity-linked Australian Dollar and further collaborated towards limiting deeper retracement slide.
Traders now look forward to the US economic docket, featuring the release of usual initial weekly jobless claims and Philly Fed Manufacturing Survey, in order to grab some short-term opportunities.
Technical levels to watch
Any subsequent retracement is likely to find support near the key 0.7500 psychological mark, which if broken might accelerate the slide back towards 0.7470 support area. On the flip side, mid-0.7500s now seems to have emerged as an immediate hurdle, which if cleared should assist the pair to aim towards reclaiming the 0.7600 handle.
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