AUD/USD surrenders Aussie jobs data-led gains, back around 0.7400 mark

   “¢   Upbeat Australian employment details provided a minor boost on Thursday.
   “¢   A goodish pickup in the US bond yields underpinned USD and capped gains.  
   “¢   Weaker commodity prices further collaborated towards denting sentiment.  

The AUD/USD pair erased a major part of its Aussie jobs data-led gains and quickly retreated around 30-35 pips from session tops.  

The pair initially was seen building on overnight rebound from two-week lows and was further boosted by stellar Australian employment details, showing an addition of 50.9K new jobs in June. Bulls, however, once again struggled to make it through the 0.7440 supply zone, with a modest US Dollar uptick prompting some fresh selling at higher levels.  

Against the backdrop of upbeat economy outlooks from the Fed Chair Jerome Powell and the central bank’s Beige Book report, a goodish pickup in the US Treasury bond yields was seen underpinning the greenback demand and kept a lid on any strong follow-through up-move for the major.

This coupled with a weaker tone around commodity space, especially copper, further dented sentiment surrounding the commodity-linked Australian Dollar and collaborated to the pair’s latest leg of retracement back closer to the 0.7400 handle.

Moving ahead, today’s US economic docket, featuring the second-tier releases of Philly Fed Manufacturing Index and the usual initial weekly jobless claims will now be looked upon for some fresh impetus ahead of a scheduled speech by the Fed Governor Randal Quarles.

Technical levels to watch

A follow-through retracement, leading to a subsequent weakness below 0.7385 immediate support, might turn the pair vulnerable to retest the 0.7345-40 intermediate support before eventually dropping to test the 0.7300 handle.

On the flip side, the 0.7440 area might continue to act as an immediate strong hurdle, which if cleared might trigger a short-covering bounce back towards 0.7480-85 supply zone en-route the key 0.7500 psychological mark.