“¢ Fails to capitalize on some renewed USD weakness/retracing US bond yields.
“¢ Subdued copper prices also do little to boost the commodity-linked Aussie.
The AUD/USD pair lacked any firm directional bias and seesawed between tepid gains/minor losses through the Asian session on Thursday.
Having gained around 1.5% so far this week, the pair now seems to have entered a bullish consolidation phase and was seen oscillating in a narrow trading range just below monthly tops touched in the previous session.
With investors assessing the impact of lower US trade tariffs on Chinese imports, the US Dollar languished near seven-week lows and was now being weighed down by the ongoing retracement in the US Treasury bond yields from four-month highs.
The pair, however, has failed to benefit from the prevalent USD weakness, with a subdued action around copper prices also doing little to provide any fresh bullish impetus to the commodity-linked Australian Dollar.
Meanwhile, a slightly cautious mood around equity market seemed to be the only factor underpinning the greenback’s relative safe-haven status against perceived riskier currencies – like the Aussie and collaborating towards keeping a lid on any meaningful up-move.
Moving ahead, today’s second-tier US economic data – Philly Fed Manufacturing Index, usual initial weekly jobless claims and existing home sales data, is unlikely to be a game changer but will still be looked upon for some short-term trading opportunities.
Technical levels to watch
Retracement below the 0.7240-35 horizontal zone is likely to get extended back towards the 0.7200 handle, which if broken might negate prospects for any further appreciating move. On the flip side, 0.7275 level might continue to act as an immediate resistance, above which the pair seems all set to test 50-day SMA hurdle, levels just above the 0.7300 handle.
Share
