AUD/USD off lows, still in red below 1-1/2 week tops
• Bullish commodities lend support to commodity-linked Aussie.
• Surging US bond yields capping gains.
• Possibly another lacklustre NA trading session.
The AUD/USD pair has managed to rebound around 15-pips from the 0.7600 neighborhood and recover majority of its lost ground.
The prevalent bullish sentiment around commodity space, especially copper and oil was seen lending some support to the commodity-linked Australian Dollar.
Adding to this, persistent US Dollar selling bias helped partly negate the effect of surging US Treasury bond yields, which tends to weigh on higher-yielding currencies - like the Aussie, and provided a minor boost to higher-yielding currencies - like the Aussie.
With the only scheduled release of US flash manufacturing and services PMI prints and relatively thin liquidity conditions, the pair seems more likely to remain capped below weekly tops touched in the previous session.
Omkar Godbole, Editor and Analyst at FXStreet writes: "The pair is chipping away at the falling channel hurdle. An end of the day close above 0.7627 would confirm a bullish break of the falling channel and shall open doors for 0.7733 (Oct. 6 low)."
"Given the strong bearish bias of the downward sloping 50-day Ma, a move to 0.7855 looks unlikely, although a 100-pip rally from the current level of 0.7620 seems likely in the short-run" he added.