AUD/USD stages a minor recovery, defend 0.7600 handle for the time being

Having stalled its downslide near 0.7600 handle, the AUD/USD pair staged a recovery on Wednesday and reversed part of previous session downslide to 3-day lows.

Currently trading around 0.7635-40 region, testing session peaks, the pair caught some fresh bids amid consolidative price action around the key US Dollar Index and mild retracement in the US Treasury bond yields. RBA's upgrade for global growth outlook, in its policy statement on Tuesday, failed to assist the pair to break through 0.7700 handle and the US Dollar price dynamics remains an exclusive driver of the pair's near-term movement. 

Meanwhile, upbeat sentiment surrounding copper prices also benefitted commodity-linked currencies - like the Aussie and collaborated to the pair's rebound on Wednesday.

In absence of any major economic releases, the pair remains at the mercy of broader market risk sentiment and momentum around the US Treasury bond yields. 

Technical levels to watch

Immediate resistance is pegged near 0.7650-55 area above which the pair is likely to make a fresh move towards 0.7700 strong hurdle. A convincing break through 0.7700 handle now seems to pave way for continuation of the pair's near-term upwards trajectory towards Nov. 2016 daily closing highs resistance near 0.7745-50 region.

On the flip side, weakness back below 0.7625 level might continue to find support near 0.7610-05 region, which if broken divisively is likely to accelerate the slide towards 0.7555-50 horizontal support with some intermediate support near 0.7580 region.