• Renewed USD buying does little prompt any fresh selling.
• Bulls seemed to track a weaker tone around the US bond yields.
• This week’s important releases would set the near-term tone.
The AUD/USD pair held on to its mildly positive tone for the third consecutive session, with bulls now eyeing a move further beyond the 0.7600 handle.
The pair built on previous session's strong upsurge and seemed rather unaffected by some renewed pickup in the US Dollar demand. A softer tone around the US Treasury bond yields helped offset USD strength and remained supportive of a modest uptick around higher-yielding currencies - like the Aussie.
Meanwhile, a subdued action around commodity space, especially copper, which tends to influence the commodity-linked Australian Dollar, did little to influence the price-action and hinder the pair's ongoing recovery move.
It would now be interesting to see if the pair is able to build on the momentum further beyond the 0.7600 handle as market participant now look forward to the release of latest FOMC meeting minutes. This along with speeches by influential FOMC member would be closely scrutinized for clues about the central bank's near-term monetary policy outlook, which might eventually help determine the pair's next leg of directional move.
Technical levels to watch
On a sustained move beyond the 0.7600 handle, the pair is more likely to extend the recovery move towards its next major hurdle near the 0.7650-55 region. On the flip side, any meaningful retracement seems to find some fresh buying near the 0.7570 level and is followed by support near the 0.7540 region.
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