“¢ A modest rebound in the US bond yields helped the USD to regain traction.
“¢ The USD bulls seemed rather unaffected by softer US Q4 GDP growth figures.
The AUD/USD pair erased all of its early gains to levels just above the 0.7100 handle and has now moved to the lower end of its daily trading range.
The pair failed to capitalize on the attempted rebound and has now retreated over 20-pips from an intraday high level of 0.7106 amid a goodish pickup in the US Dollar demand, thanks to a modest rebound in the US Treasury bond yields.
The bid tone surrounding the greenback seemed rather unaffected by a downward revision of the fourth quarter US GDP growth rate, which now stands at 2.2% annualized pace as against 2.6% estimated in the preliminary release and 2.4% anticipated.
With the global markets now showing some initial signs of stability, especially after the recent weakness triggered by lingering fears of slowing economic growth, investors now await more details on the progress in the US-China trade negotiations for some meaningful impetus.
Looking at the technical picture, the pair has been finding some support near a short-term ascending trend-line support, extending from lows set on March 11, which should now act as a key pivotal point for the pair’s next leg of a directional move.
Technical levels to watch
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