AUD/USD trims early gains, retreats back to mid-0.7500s

The AUD/USD pair ran through some fresh offers and has now surrendered majority of its early gains to session tops near 0.7575 level.

The pair failed to build on early up-move amid weaker tone surrounding commodity space, led by the ongoing slump in oil prices. Adding to this, the prevalent cautious environment was also seen boosting the US Dollar's safe-haven appeal against its Australian counterpart. 

However, continuous fall in oil prices has been fueling concerns over slowing inflationary pressure and raised skepticism over the prospects for additional Fed rate-hike move this year. Hence, a mildly softer tone around the US Treasury bond yields was seen lending some support to higher-yielding currencies - like the Aussie, and helped the pair to hold above weekly lows touched during Asian session on Thursday.

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With the broader market risk sentiment and the US bond yield dynamics driving the pair through Asian session, traders now look forward to the release of weekly jobless claims data in order to grab some short-term trading opportunities. 

Also in focus would be the Federal Reserve Governor Jerome Powell's testimony before the US Senate Committee on Banking, which might influence Fed rate-hike expectations and also provide some impetus to the major.

Technical levels to watch

Currently trading around 0.7555 region, a follow through retracement is likely to find support at the very important 200-day SMA near 0.7530 region, below which the pair is likely to accelerate the slide back towards the key 0.75 psychological mark.

On the upside, momentum above session peak resistance near 0.7575 level could get extended towards the 0.7600 handle before the pair eventually aims back towards retesting multi-month highs resistance near 0.7630-35 region.

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