AUD/USD refreshes session tops, around 0.7575 region amid notable USD weakness

• A combination of factors assisted AUD/USD to regain positive traction on Wednesday.
• Renewed USD selling remained supportive amid a modest bounce in the equity markets.
• Bulls might wait for a sustained move beyond the 0.7600 mark before placing fresh bets.

The AUD/USD pair refreshed daily tops, around the 0.7575 region during the early European session and recovered a major part of the overnight losses.

The pair managed to regain some positive traction on Wednesday and was being supported by the emergence of some fresh selling around the US dollar. Despite concerns about the discovery of a new fast-spreading coronavirus variant, the greenback struggled to capitalize on this week’s rebound from over two-and-half-year lows. This, in turn, was seen as one of the key factors driving the AUD/USD pair higher through the first half of the trading action.

Meanwhile, the market reaction to the US President Donald Trump’s threat not to sign a long-awaited $892 billion coronavirus relief bill turned out to be short-lived. This was evident from a goodish rebound in the US equity futures, which provided an additional boost to the perceived riskier aussie and remained supportive of the AUD/USD pair’s uptick.

Meanwhile, the latest leg of a sudden move up over the past hour or so could also be attributed to some technical buying above the 0.7550-55 horizontal resistance. It, however, remains to be seen if the AUD/USD pair is able to build on the momentum or struggles to move back above the 0.7600 mark, or weekly tops touched at the beginning of this week.

Market participants now look forward to the US economic docket – highlighting the release of Durable Goods Orders and Initial Weekly Jobless Claims – for a fresh impetus. This, along with the broader market risk sentiment, developments surrounding the coronavirus saga and US stimulus headlines, will further influence the USD price dynamics.

Technical levels to watch