“¢ A modest USD profit-taking slide helps regain positive traction.
“¢ Bullish copper prices lend some additional support to the Aussie.
“¢ An uptick in the US bond yields might cap additional strong gains.
The AUD/USD pair caught some fresh bids near the key 0.7500 psychological mark and is currently placed at fresh session tops, around mid-0.7500s.
With investors looking past the latest positive news coming out of the US-China trade talks, which was initially seen extending some support to the China-proxy Australian Dollar, a modest US Dollar profit-taking slide helped the pair to regain some positive traction.
This coupled with a strong bullish sentiment around copper prices provided an additional boost to commodity-linked currencies and remained supportive of the pair’s strong bid tone through the mid-European session.
It, however, remains to be seen if the pair is able to build on the momentum or the up-move once again fizzles out at higher levels amid a goodish pickup in the US Treasury bond yields, which tends to drive flows away from higher-yielding currencies – like the Aussie.
In absence of any major market moving economic releases, traders on Monday will take cues from speeches by influential FOMC members. This along with the release of latest FOMC meeting minutes and US durable goods orders should help determine the pair’s next leg of directional move.
Technical levels to watch
Any subsequent up-move beyond the 0.7565 level has the potential to continue lifting the pair further towards reclaiming the 0.7600 handle. On the flip side, immediate support is now pegged near the 0.7525 horizontal level, which if broken might drag the pair back towards the 0.7500 handle en-route 0.7485-80 support.
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