AUD/USD spikes to 0.8100 handle, highest since May 2015

The greenback extended overnight slump, pushing the AUD/USD pair to its highest level since May 2015 and closer to the 0.8100 handle.

The pair continued gaining positive traction for the fourth consecutive session and was being supported by persistent greenback selling bias, with the key US Dollar Index tumbling to fresh yearly lows near the 91.25 region. 

The ongoing retracement in the US Treasury bond yields, on fading expectations over additional Fed rate hike action by the end of this year, further added to the greenback woes and provided an additional boost to higher-yielding currencies - like the Aussie. 

Meanwhile, today's release of upbeat home loans data from Australia remained supportive of the strong bid tone surrounding the major. Focus now shifts to a scheduled speech by RBA Assistant Governor Debelle, while the already delayed release of Chinese trade balance data would also have its impact on the China-proxy Australian Dollar.

Technical levels to watch

Sustained momentum beyond the 0.8100 handle is more likely to get extended towards May 2015 swing highs resistance near the 0.8165 region ahead of the 0.8200 handle.

On the flip side, 0.8065 area now becomes immediate support to defend, which if broken might trigger a profit taking slide back towards the key 0.80 psychological mark.