AUD/USD off lows, still struggling near 0.7600 mark ahead of US data

• Persistent USD weakness helps bounce off 4-month lows.
• Tumbling US bond yields lending additional support.
• Focus remains on important US macro data.

The AUD/USD pair has managed to recover some of its early lost ground to 4-month lows and might now be looking to build on the rebound beyond the 0.7600 handle.

Investors seem to have digested today's disappointing Australian wages data, with a fresh wave of greenback selling pressure helping the pair to bounce off lows. In fact, the key US Dollar Index tumbled to its lowest level in three weeks, below mid-93.00s, and has been one of the key factors lending some support to the pair.

Adding to this, a sharp slide in the US Treasury bond yields, which tends to boost demand for higher-yielding currencies - like the Aussie, further collaborated to the pair's modest recovery of around 25-30 pips from session lows.

Meanwhile, the ongoing slump in commodity space did little to extend any additional support to the commodity-linked Australian Dollar, with the pair struggling to gain any follow through traction beyond the 0.7600 handle.

Today's US economic docket features the latest inflation figures and monthly retail sales data, and should help investors determine the pair's next leg of directional move.

Technical levels to watch

Any follow through recovery move is likely to confront fresh supply near the 0.7625 region, above which the pair is likely to dart towards mid-0.7600s ahead of 0.7670-75 horizontal hurdle.

On the flip side, weakness below 0.7575 level would turn the pair vulnerable to extend its downward trajectory towards 0.7540-35 intermediate support en-route the key 0.75 psychological mark.

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