AUD/USD extends the bounce above 0.7050 on higher commodities

• Benefits from firmer commodities prices and a broadly weaker US dollar.
• Fresh US-China trade concerns and global growth woes could keep a check on the higher-yielding Aussie.

The AUD/USD pair regained poise and took-out the stiff resistance near the midpoint of 0.70 handle, as the bulls continue to cheer the rebound in oil and copper prices amid a broadly weaker US dollar.

The Aussie staged a solid recovery from downbeat Chinese industrial profits data-led sell-off to 0.7017 troughs, helped by a rebound in oil prices while firmer gold prices also boost the sentiment around the resource-linked AUD. Gold prices sit at over six-month tops near 1284 levels.

The upside in the spot can be also attributed to broad-based US dollar weakness, in the wake of a sharp decline in the US consumer confidence, which stoked fears that a global economic slowdown was spilling over into the US. The sell-off in the US stock markets amid US political risks also continue to undermine the sentiment around the buck.

Looking ahead, the pair awaits the US goods trade balance and housing data for fresh trading impetus while the sentiment on the Wall Street will also play a crucial role for further dollar moves.

AUD/USD Technical Levels