AUD/USD clings to modest recovery gains, around mid-0.7600s
• Hangs closer to multi-month lows.
• Chinese trade data fails to lend support.
• Bouncing US bond yields cap gains.
The AUD/USD pair has managed to hold on its modest recovery gains but remained within striking distance of multi-month lows.
Today's lower-than-expected Chinese trade balance data, coming in to show a surplus of CNY+254.47 billion vs +280.45 billion expected, did little to provide any additional boost to the China-proxy Australian Dollar.
This coupled with a modest uptick in the US Treasury bond yields, lending some support to the US Dollar, further collaborated towards keeping a lid on any meaningful up-move for higher-yielding currencies – like the Aussie.
However, overnight report that Senate Republicans might delay the corporate tax cuts by a year helped the pair to hold with some minor daily gains around mid-0.7600s.
As investors monitor progress over the US tax bill, the US bond yield dynamics would play a key role in driving the pair through Wednesday's trading session amid data thin economic docket.
Technical levels to watch
Immediate resistance is pegged near 0.7675 level, above which the pair is likely to make a fresh attempt towards conquering the very important 200-day SMA hurdle near the 0.7700 handle.
On the flip side, the 0.7630-25 region remains an immediate support to defend, which if broken would turn the pair vulnerable to slide below the 0.7600 handle and test its next support near 0.7580-75 zone.