AUD/USD recovers lost ground, refresh session tops ahead of US GDP

Having posted a session low near mid-0.7600s, the AUD/USD pair regained traction and turned positive for the third consecutive session.

Currently trading around 0.7670-75 band, testing session tops, the prevalent negative tone surrounding the US treasury bond yields seems to be only factor diverting some flows to higher-yielding currencies - like the Aussie, and collaborating to the pair's recovery from session low. 

Traders seem to have largely ignored broad based greenback strength, with the key US Dollar Index holding steady near the very important 100.00 psychological mark. Moreover, the pair has managed to recover lost ground despite of the bearish sentiment around commodity space, which tends to dent demand for commodity-linked currencies. 

Hence, it remains to be seen if the pair is able to build on the recovery move or runs through some fresh offers as traders look forward to the release of final US Q4 GDP print. Later during the NY session, Fedspeaks would also influence the greenback demand and provide fresh impetus for the major. 

   •  Fed speak in focus today – Danske Bank

Technical levels to watch

On a sustained move above 0.7680 level, the pair is likely to head towards reclaiming the 0.7700 handle before aiming towards testing 0.7730 strong hurdle. Meanwhile, on the downside 0.7650 level remains immediate support and is closely followed by 50-day SMA support near 0.7630 region. A convincing break below 50-day SMA support now seems to drag the pair back below the 0.7600 handle towards testing the very important 200-day SMA support near mid-0.7500s.