AUD/USD bears struggle to push it through 0.75 handle

• Renewed USD buying interest/rising US bond yields prompt some selling.
• Downside remains supported by Aussie jobs data/positive copper prices.

The AUD/USD pair extended its steady decline from an intraday high level of 0.7548 and momentarily dipped below the key 0.75 psychological mark in the last hour, albeit quickly recovered few pips thereafter.

With investors looking past today's mixed Australian jobs data, some renewed US Dollar buying interest prompted some fresh selling at higher levels. The downfall accelerated further during the early NA session following the release of upbeat Philly Fed Manufacturing Index, which surpassed even the most optimistic estimates.

Adding to this, continuous rise in the US Treasury bond yields, which tends to drive flows away from higher-yielding currencies - like the Aussie, was seen as one of the other key factors weighing on the major.

The retracement slide, however, remained cushioned amid a positive trading sentiment around commodity space, especially copper, which was seen lending some support to the commodity-linked Australian Dollar.

Looking at the broader picture, the pair has been oscillating with a broader trading band over the past three weeks and hence, it would be prudent to wait for a decisive break-through the range before positioning for the pair's next leg of directional move.

Technical outlook

Valeria Bednarik, American Chief Analyst at FXStreet writes: “The pair holds above the 23.6% retracement of its latest decline and now trades above bearish 20 and 100 SMA in the 4 hours chart, while technical indicators neared their mid-lines, now lacking clear directional strength. The downside seems limited as long as the price holds above the mentioned Fibonacci support at around 0.7505, while to the upside a major resistance is the 38.2% retracement of the mentioned rally, at 0.7565 and where the pair topped at the beginning of the week.”

Share: Feed news

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.