“¢ Resurgent USD demand prompts some fresh selling during the European session.
“¢ Weaker commodities further dent sentiment around commodity-linked currencies.
The AUD/USD pair faded a mid-European session bullish spike to an intraday high level of 0.7590 level and tumbled to fresh session lows in the last hour.
The pair came under some renewed selling pressure since the European session and was being weighed down by a resumption of the greenback’s strong bullish run. In fact, the key US Dollar Index jumped to fresh six-month tops, beyond the 0.7400 handle despite mixed US durable goods orders data, and was seen as one of the key factors weighing on the major.
This coupled with a bearish sentiment around commodity space, especially copper and oil, exerted some additional pressure on the commodity-linked Australian Dollar and further collaborated to the pair’s sharp intraday fall, back to mid-0.7500s.
Meanwhile, traders seemed to have largely ignored the ongoing slump in the US Treasury bond yields, with the prevalent strong bullish sentiment surrounding the buck acting as an exclusive driver of the momentum on the last trading day of the week.
Despite a good two-way price-action, the pair remains within a familiar trading range, held over the past four trading session. Hence, traders are likely to wait for a decisive break in either direction before positioning for the pair’s near-term trajectory.
Technical levels to watch
Immediate support is pegged near 0.7540 horizontal level, below which the pair is likely to accelerate the slide back towards the key 0.7500 psychological mark. On the upside, any meaningful up-move might continue to confront fresh supply near the 0.7600 handle, which if cleared is likely to trigger a short-covering bounce and lift the pair towards 0.7645-50 supply zone.
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