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  • AUD/USD unable to extend the recovery as USD retains recent gains.
  • Recovery in Treasury yields and S&P 500 futures lift risk and the AUD.  
  • All eyes on a fresh batch of US data, yields amid trade-related news.

The bid tone around the Australian dollar remains intact in the European session, keeping the AUD/USD pair well support in the upper bound of the 0.67 handle.

AUD/USD: Bulls await a break above 0.6800

Amid calm trading so far this Friday, the Aussie remains the strongest across the fx board, in the wake of an improvement in the risk sentiment, as indicated by a relief recovery in the  S7P 500 futures and Treasury yields across the curve. The 30-year Treasury yields are rallying +1.50% and back above the 2.0% level. Meanwhile, the European equities are also trading on the front foot in the opening hour.

However, a break above the 0.68 handle looks elusive for the time being, as markets remain wary over the ongoing US-China trade tussle. Moreover, the US dollar continues to extend its bullish consolidative mode in Europe, having benefited strongly from a bigger-than-expected rise in the US Retail Sales data that alleviated the recent recession fears.

Furthermore, the retreat on gold prices also adds to the limited upside in the commodity currency. Looking ahead, markets stay focussed on the price action around the Treasury yields and risk trends for fresh trading impulse ahead of the US housing and consumer sentiment data.

AUD/USD Technical levels