“¢ Trade uncertainty continues to weigh for the third consecutive session.
“¢ Weaker copper prices dent Aussie and add to the downward pressure.
“¢ Subdued USD demand/softer US bond yields help limit the downside for now.
The AUD/USD pair remained under some selling pressure for the third consecutive session on Wednesday, albeit has managed to rebound few pips from closer to YTD lows.
Lingering US-China trade war concerns continued weighing on investors sentiment and was seen as one of the key factors exerting downward pressure on the China-proxy Australian Dollar since the beginning of this week.
This coupled with a weaker sentiment around commodity space, especially copper, undermined demand for commodity-linked currencies and further collaborated to the pair’s steady decline through the Asian session.
Further downside, however, remained limited amid a subdued US Dollar price action, which struggled to build on overnight sharp rebound from two-week lows and seemed uninspired by directionless US Treasury bond yields.
The pair recovered around 15-20 pips from intraday lows, tough a move back above the 0.7400 handle still seems elusive as traders now look forward to the release of US durable goods orders data for some fresh impetus.
Later during the NY trading session, a scheduled speech by the Fed Governor Randal Quarles might influence the USD price dynamics and help traders grab some short-term trading opportunities.
Technical levels to watch
Immediate support is pegged near the 0.7350 region, below which the pair is likely to extend the downfall towards 2017 yearly lows support near the 0.7330 area en-route the 0.7300 handle.
On the flip side, any meaningful up-move beyond the 0.7400 mark might continue to confront fresh supply near the 0.7435-40 region, which if cleared could assist the pair to aim towards reclaiming the key 0.7500 psychological mark.
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