“¢ A sharp USD retracement helps stage a solid bounce from 2-week lows.
“¢ Traders shrugged off weaker copper prices and resurgent US bond yields.
“¢ Today’s release of ADP report and Q1 GDP print to provide fresh impetus.
The AUD/USD pair built on its rebound from an intraday low level of 0.7476, or two-week lows, and jumped to fresh session tops in the last hour.
Currently trading around the 0.7535-40 band, the pair has now reversed a major part of previous session’s downfall. With investors looking past today’s disappointing release of Building Approvals data from Australia, the up-move was supported by the ongoing US Dollar retracement slide.
A goodish pickup in the US Treasury bond yields did little to revive the greenback demand, with a weaker tone around copper prices also doing little to dampen sentiment around the commodity-linked Australian Dollar and hinder the pair’s solid rebound of over 60-pips from session lows.
Next in focus would be the US economic docket, featuring the release of ADP report on private sector employment and the second estimate of Q1 GDP growth figures, which will be looked upon for some fresh trading impetus.
Technical levels to watch
A follow-through momentum beyond 0.7555 horizontal level could get extended towards the 0.7575-80 supply zone before the pair eventually makes a fresh attempt to conquer the 0.7600 handle.
On the flip side, the key 0.7500 psychological mark now becomes an immediate support to defend, which if broken might turn the pair vulnerable to break below 0.7475-70 support area and head towards its next support near mid-0.7400s.
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