AUD/USD jumps to fresh session peak amid broad based USD retracement

A bout of greenback selling pressure seems to have emerged during early NA session, helping the AUD/USD pair to extend its recovery move from the vicinity of 0.7600 handle.

Currently trading at fresh session high, around mid-0.7600s, long-dollar unwinding trade seems to be only factor responsible for the pair's up-surge in the past couple of hours amid prevalent uncertainty over the US President Donald Trump's policies. 

Meanwhile, a fresh leg of downslide in the US Treasury bond yields was also supportive of the pair's up-move. This coupled with buoyant sentiment surrounding commodity space, especially Copper, was also seen benefitting commodity-linked currencies - like the Aussie.

With an empty US economic docket, the pair remains at the mercy of the US Treasury yield dynamics and broader sentiment surrounding riskier/higher-yielding currencies, including the Australian Dollar. 

Technical outlook

Omkar Godbole, Analyst and Editor at FXStreet notes, “Despite the repeated failure near 0.77 last week and a drop to near 0.76 handle on Tuesday, one cannot rule out another attempt at 0.77 levels as long as the pair is holding above 0.76 and the 5-DMA and 10-DMA are sloping upwards. A daily close above 0.77 would open doors for a test of supply around 2016 high of 0.7835. Meanwhile, on the downside, a daily close below 10-DMA would suggest the rally from the December 23 low of 0.7160 has topped out.”