AUD/USD retakes 0.7200 handle and beyond

Having posted a session low near 0.7160 area, the AUD/USD pair caught fresh bids and was seen building on to its momentum back above 0.7200 handle.

Currently trading around 0.7215 region, the US Dollar weakness across the board helped the pair to rebound from closer to 7-month lows. Also assisting the pair’s recovery on Thursday is rebound in base metal prices, especially Copper, and a sharp slide in the US Treasury bond yields, which is seen lending support to higher-yielding currencies - like the Aussie. 

The incoming US economic data would continue to grab investors attention and today's weekly jobless claims data might provide some short-term trading impetus. Meanwhile, the broader trend would remain dependent on investors' expectation of next Fed rate-hike action in 2017, which would now take fresh cues from a slew of important US macro data, including the keenly watched NFP data, due next week. 

Technical levels to watch

A follow through bullish momentum above 0.7220-25 immediate hurdle is likely to trigger a short-covering rally towards 0.7265-70 resistance ahead of 0.7300 round figure mark. On the downside, weakness back below 0.7200 handle might continue to find support at multi-month lows near 0.7160 region, which if broken is likely to accelerate the downslide towards 0.7100 round figure mark.