• A modest USD profit-taking slide helps regain positive traction.
• Bullish copper prices lend some additional support to the Aussie.
• An uptick in the US bond yields might cap additional strong gains.
The AUD/USD pair caught some fresh bids near the key 0.7500 psychological mark and is currently placed at fresh session tops, around mid-0.7500s.
With investors looking past the latest positive news coming out of the US-China trade talks, which was initially seen extending some support to the China-proxy Australian Dollar, a modest US Dollar profit-taking slide helped the pair to regain some positive traction.
This coupled with a strong bullish sentiment around copper prices provided an additional boost to commodity-linked currencies and remained supportive of the pair's strong bid tone through the mid-European session.
It, however, remains to be seen if the pair is able to build on the momentum or the up-move once again fizzles out at higher levels amid a goodish pickup in the US Treasury bond yields, which tends to drive flows away from higher-yielding currencies - like the Aussie.
In absence of any major market moving economic releases, traders on Monday will take cues from speeches by influential FOMC members. This along with the release of latest FOMC meeting minutes and US durable goods orders should help determine the pair's next leg of directional move.
Technical levels to watch
Any subsequent up-move beyond the 0.7565 level has the potential to continue lifting the pair further towards reclaiming the 0.7600 handle. On the flip side, immediate support is now pegged near the 0.7525 horizontal level, which if broken might drag the pair back towards the 0.7500 handle en-route 0.7485-80 support.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.