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AUD/USD recovers from 1-month low, turns positive around mid-0.6800s

  • AUD/USD stages a modest rebound and snaps four consecutive days of losing streak.
  • A modest USD pullback seemed to have prompted some intraday short-covering move.
  • Further gains are likely to remain limited ahead of the Australian jobs data on Thursday.

The AUD/USD pair built on its steady intraday recovery from over one-month lows and climbed to fresh session tops, around the 0.6855 region in the last hour.

A combination of supporting factors helped the pair to attract some buying interest near the 0.6830-25 region and move into the positive territory to snap four consecutive days of losing streak.

A modest USD pullback helped bounce off lows

A rebound in the global risk sentiment extended some support to perceived riskier currencies, including the aussie, and turned out to be one of the key factors that helped limit the early slide.

On the other hand, the US dollar failed to preserve its early gains amid a pullback in the US Treasury bond yields and further collaborated to the pair's intraday rebound of around 30 pips.

The pair has now recovered a part of the overnight downfall, albeit absent relevant market moving economic releases from the US might keep a lid on any strong recovery move for the major.

Moving ahead, market participants now look forward to the Australian monthly employment details, which might influence the pair's momentum and produce some meaningful trading opportunities.

Technical levels to watch

 

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