• Extends post-NFP upsurge amid subdued USD demand.
• Seemed unaffected by a goodish pickup in the US bond yields.
• Traders even shrug off softer commodity prices.
The AUD/USD pair built on Friday’s strong up-move and is currently placed at fresh 2-week tops, around the 0.7870-75 region.
Despite stellar headline NFP print, sluggish wage growth data kept the US Dollar bulls on the defensive and was seen as one of the key factors driving the pair higher at the start of a new trading week. This coupled with a fresh wave of global risk-on trade provided an additional boost to the perceived riskier Australian Dollar.
Meanwhile, the market seems to have largely negated a goodish pickup in the US Treasury bond yields, which tends to undermine demand for higher-yielding currencies – like the Aussie, with a mildly softer tone around copper prices also doing little to stall the pair’s strong bullish momentum to the highest level since Feb. 26.
There isn’t any major market-moving economic data due for release on Monday and hence, the USD price dynamics might continue to act as an exclusive driver of the pair’s momentum the RBA Assistant Governor Michele Bullock’s scheduled speech during the Asian session on Tuesday.
Technical levels to watch
Bulls might now be aiming to conquer the 0.7900 handle, above which a fresh bout of short-covering could lift the pair back towards 0.7945-50 supply zone. On the flip side, mid-0.7800s now seems to protect the immediate downside and is followed by support at 100-day SMA near the 0.7820 region.