AUD/USD extends consolidative price action below 200-DMA ahead of US GDP

   •  Remains confined within 40-50 narrow weekly trading range. 
   •  Sliding US bond yields offset a modest USD rebound.
   •  US GDP growth figures eyed for fresh directional impetus. 

The AUD/USD pair quickly reversed a dip to mid-0.7600s and managed to rebound around 20-pips from session lows.

Currently trading around 0.7670-75 band, the pair continued with its struggle for a firm near-term direction and has been oscillating within 40-50 pips narrow trading range since the beginning of this week. 

A combination of diverging factors failed to provide any fresh impetus and forced the pair to extend its consolidative price action through the mid-European session on Thursday.

With investors looking past the passage of a historic US tax bill, a softer tone around the US Treasury bond yields extended some support to the higher-yielding currency but a modest US Dollar rebound might now keep a lid on any meaningful up-move.

It would be interesting to see if the pair is able to break through its near-term trading range or remains capped below the very important 200-day SMA as traders now look forward to the final US GDP growth numbers for fresh cues. 

Today's US economic docket also features the release of Philly Fed Manufacturing Index, which along with the usual initial weekly jobless claims might also collaborate towards providing some momentum in a rather quiet, pre-Christmas trading action.

Technical levels to watch

Momentum beyond 0.7680 level might continue to confront fresh supply near the 0.7695-0.7700 region (200-day SMA), above which the pair is likely to dart towards 0.7730 supply zone (early Nov. high).

On the flip side, the 0.7650-40 region remains an immediate support to defend, which if broken is likely to accelerate the fall towards the 0.7600 handle en-route 0.7565-60 horizontal support.