AUD/USD quickly reverses a dip to sub-0.7600 level
• Bounces off 100-hourly SMA support.
• An uptick in the US bond yields capping gains.
• Thin economic docket unlikely to trigger any meaningful momentum.
The AUD/USD pair quickly reversed a dip to sub-0.7600 level and rebounded around 20-pips from session tops.
The latest leg of modest recovery lacked any catalyst and could be attributed to some technical buying near 100-hourly SMA support. The uptick, however, struggled to gain any strong follow-through traction easing US Dollar selling pressure.
Adding to this, weaker commodity prices, especially copper, coupled with a modest pickup in the US Treasury bond yields might continue to keep a lid on any additional up-move for commodity-linked/higher-yielding currencies - like the Aussie.
On the economic data front, the release of new home sales data from the US, followed by Fedspeaks would be looked upon for some trading impetus later during the day. In the meantime, the US bond yield dynamics might turn out to be an exclusive driver of the pair's momentum on the first trading day of a data-packed week.
Technical levels to watch
Immediate resistance is pegged near 0.7625 level, above which the pair is likely to aim towards testing 0.7655-60 zone before eventually darting towards 200-day SMA hurdle near the 0.7695-0.7700 region.
On the flip side, 0.7590 level now seems to have emerged as immediate support, which if broken could accelerate the slide towards mid-0.7500s.