“¢ Upbeat Aussie GDP growth figures helped regain positive traction.
“¢ Surging US bond yields ease USD bearish pressure and keep a lid on further up-move.
The AUD/USD pair held on to its strong gains near 6-week tops, albeit now seems to have stalled the bullish momentum near 100-day SMA hurdle.
Today’s upbeat Aussie GDP growth figures helped the pair to regain traction and build on overnight rebound from sub-0.7600 level. The pair touched an intraday high level of 0.7673, the highest since April 23, but struggled to make it through a technically significant moving average.
A goodish pickup in the US Treasury bond yields, with the benchmark 10-year yield rising 4bps to 2.959%, now seems to have eased the US Dollar bearish pressure and was seen as the only factor keeping a lid on any further strong up-move.
Meanwhile, a positive trading sentiment around commodity space, especially copper, which tends to underpin demand for the commodity-linked Australian Dollar, remained supportive of the pair’s strong bid tone through the mid-European session.
With an empty US economic docket, the USD/US bond yields dynamics might continue to act as key determinants of the pair’s momentum ahead of the Aussie trade balance data, due for release during the early Asian session on Thursday.
Technical levels to watch
A follow-through momentum beyond 0.7670 barrier (100-DMA) is likely to get extended towards the 0.7700 handle, above which the pair seems all set to head towards testing its next resistance near the 0.7740-45 region.
On the flip side, any meaningful retracement below 0.7640 level now seems to find strong support near the 0.7610-0.7600 region, which if broken could accelerate the fall back towards 0.7565 horizontal support.
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