Search ForexCrunch

   “¢   Traders looked past today’s disappointing Aussie building approvals data.
   “¢   USD fails to benefit from resurgent US bond yields and helps rebound.
   “¢   Traders now eye today’s US macro data for some meaningful impetus.

The AUD/USD pair built on its steady climb from an intraday low level of 0.7476, or two-week lows, and refreshed session tops in the last hour.

The pair was initially dragged down by weaker-than-expected release of  building approvals data from Australia, which came in to show a sharp decline of 5.0% m/m in April as against 3.5% growth reported last month.  

Further downside, however, remained limited amid a modest retracement witnessed around the US Dollar, which has failed to benefit from a goodish pickup in the US Treasury bond yields and renewed optimism over the US-North Korean summit.

Meanwhile, a mildly softer tone around copper prices, which tends to undermine demand for the commodity-linked Australian Dollar, did little to hinder the pair’s rebound of around 35-40 pips from session lows.

Currently placed at the top end of its daily trading range, around the 0.7510-15 region, traders now look forward to the US economic docket, featuring the release of ADP report on private sector employment and the second estimate of Q1 GDP growth figure, for some fresh impetus.  

Technical levels to watch

Immediate resistance is pegged near 0.7525 level, above which the pair is likely to aim back towards challenging the 0.7575-80 supply zone before eventually darting towards the 0.7600 handle.

On the flip side, the 0.7475-70 region might continue to act as an immediate support, which if broken might turn the pair vulnerable to slide back towards multi-month lows support, closer to the 0.7400 round figure mark.