AUD/USD reverses jobs data-led gains to 2-week highs; headed back to 0.74 mark?

The AUD/USD pair ran through some fresh offers at higher levels and reversed all of its upbeat Australian jobs data-led gains to 2-week highs, albeit has managed to hold its neck above the 0.7400 handle.

The pair's slide to 0.7430 region during mid-European session could be attributed to a bout of global risk-aversion, which triggered a sharp slide in commodity prices and was seen weighing on commodity-linked currencies, including the Australian Dollar. 

A fresh leg of downslide in the US treasury bond yields further reaffirms the risk-off environment, led by the latest US political turmoil, and extended some support to the US Dollar's safe-haven appeal against its Australian counterpart. 

The Aussie, however, continues to be underpinned by today's impressive employment figure and hence, any further downslide remained limited, at least for the time being.

Next on tap would be the US economic docket, which although is unlikely to act as a catalyst for the pair's near-term direction but would be looked upon for some short-term momentum play.

Technical levels to watch

A follow through retracement below the 0.7400 handle could get extended towards 0.7385 horizontal support, below which the pair might turn vulnerable and head towards testing an important support near 0.7345 level. On the flip side, momentum back above mid-0.7400s should pave way for continuation of the pair's near-term recovery trend towards reclaiming the key 0.7500 psychological mark, with some intermediate barrier near 0.7475-80 region.