AUD/USD surges through mid-0.7100s, back closer to multi-week tops

   •  The prevalent USD selling bias helped regain positive traction on Friday.
   •  The USD bulls seemed unimpressed by an upsurge in the US bond yields.

   •  Bullish commodity prices/risk-on mood remains supportive of the up-move.

The AUD/USD pair surged back above mid-0.7100s and has now recovered the previous session sharp intraday pullback from multi-week tops. 

The pair managed to catch some fresh bids on the last trading day of the week on the back of some renewed selling pressure around the US Dollar, which failed to capitalize on the overnight attempted rebound supported by robust US economic data.

Even a sharp intraday turnaround/upsurge in the US Treasury bond yields, triggered by the prevalent risk-on mood across global equity markets, also did little to provide any immediate respite to the USD bulls or stall the pair’s strong intraday positive momentum.

The commodity-linked currencies, including the Aussie, further benefitted from a goodish pickup in the commodity space – especially oil and copper, which coupled with cross-driven strength stemming out of an upsurge in the AUD/JPY cross provided an additional boost.

The pair has now moved back within striking distance of six-week tops set on Wednesday as market participants now look forward to a relatively thin US economic docket – highlighting the release of Prelim UoM Consumer Sentiment, for some short-term trading impetus.

Technical levels to watch

A follow-through buying has the potential to continue lifting the pair further towards testing the very important 200-day SMA, around the 0.7200 handle, above which the momentum could further get extended towards the 0.7235-40 supply zone. 

On the flip side, the 0.7130-25 region now becomes immediate support to defend and is followed by the 0.7100 round figure mark, which if broken might accelerate the fall further towards the 0.7070 horizontal support en-route mid-0.7000s.

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