• Aussie employment details help build on overnight strong up-move.
• Resurgent US bond yields continue to keep a lid on additional gains.
The AUD/USD pair trimmed some of its early gains and has now retreated around 20-pips from 3-day tops touched earlier.
The pair built on overnight strong up-move back above the key 0.75 psychological mark and continued gaining positive traction for the second consecutive session. The up-move was further supported by a beat in the number of new job additions in the Australian economy, which helped offset an uptick in the unemployment rate.
However, resurgent US Treasury bond yields, which although failed to revive the US Dollar demand, kept a lid on any further gains for higher-yielding currencies – like the Aussie.
Meanwhile, the prevalent positive trading sentiment around commodity space, which tends to underpin demand for the commodity-linked Australian Dollar, remained supportive of the bid tone surrounding the major.
Later during the early NA session, the second-tier US economic data – the usual weekly initial jobless claims and Philly Fed Manufacturing Survey for May, would now be looked upon for some fresh trading impetus.
Technical levels to watch
The 0.7500 handle now seems to act as an immediate support, which if broken might prompt some fresh selling and drag the pair back towards 0.7470 support area en-route mid-0.7400s. On the upside, momentum beyond mid-0.7500s has the potential to continue lifting the pair further towards reclaiming the 0.7600 handle.
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