AUD/USD flirting with lows near mid-0.7600s

The AUD/USD pair came under some selling pressure on Thursday and reversed part of previous session's strong recovery move to weekly tops.

Currently trading around 0.7655-50 region, testing session lows, the mildly bearish sentiment surrounding the major could be attributed to weaker commodity prices, especially copper, which tends to dent demand for commodity-linked currencies - like the Aussie. This coupled with a follow through modest US Dollar recovery further collaborated to the offered tone surrounding the major. 

Meanwhile, markets seems to have digested Wednesday's hawkish comment from couple of FOMC members - Chicago Fed President Charles Evans and Boston Fed President Eric Rosengren (non-voting member), and hence, a fresh leg of slide in the US treasury bond yields seems to extend support to higher-yielding currencies and limit further downslide, at least for the time being.

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Later during the day, the release of final US GDP growth numbers, followed by Fedspeaks, would now be looked upon for fresh impetus and grab short-term trading opportunities.

Technical levels to watch

A follow through retracement below mid-0.7600s could get extended back towards 50-day SMA support near 0.7630 region, which if broken would turn the pair vulnerable to decisively break below the 0.7600 handle and head towards testing the very important 200-day SMA support near 0.7550 region.

On the upside, 0.7670-75 area now seems to have emerged as immediate resistance, above which a fresh bout of short-covering is likely to assist the pair back towards reclaiming the 0.7700 handle and boost it further towards its next major hurdle near 0.7730 level.