AUD/USD recovers further from multi-month lows, holds comfortably above 0.70 handle

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   •  A modest USD pullback from near 2-year tops helped ease the bearish pressure.
   •  RBA rate cut speculations offset US-China trade optimism and might cap gains.
   •  Investors now eye the key US Q1 GDP report for some meaningful trading impetus.

The AUD/USD pair traded with a mild positive bias through the Asian session on Friday and was seen building on the overnight rebound from near four-month lows.

Despite Thursday upbeat US durable goods orders data, the US Dollar failed to capitalize on its intraday positive move to the highest level since May 2017 and assisted the pair to rebound around 25-30 pips from an intraday low level of 0.6988. 

As investors await today important release of the first-quarter US GDP report, the USD bulls held on the defensive on the last trading day of the week and assisted the pair to extend the overnight steady climb from the lowest level since early January. 

Meanwhile, the recent optimism over a possible US-China trade deal was largely offset by growing speculations that the RBA might be forced to cut interest rates as early as in May, which might now turn out to be a key factor capping any meaningful recovery.

Hence, it would be prudent to wait for a strong follow-through buying before confirming that the pair might have actually bottomed out in the near-term and positioning for any further recovery ahead of the latest FOMC policy decision, scheduled to be announced next week. 

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