AUD/USD tumbles to lows, reverses Wednesday’s up-move

   •  A goodish pickup in the USD demand/US bond yields prompts some aggressive selling.
   •  Bullish copper prices fail to lend any support to the commodity-linked Aussie.

The AUD/USD pair extended its retracement slide from 1-1/2 week tops and has now dropped to fresh session lows, eroding all of its previous session's gains. 

With traders looking past today's mixed Australian trade balance report, a goodish pickup in the US Dollar demand, amid easing US-China trade tensions, capped the initial up-move. 

This coupled with a strong uptick in the US Treasury bond yields prompted some aggressive selling and collaborated to the pair's sharp fall of nearly 50-pips from an intraday high level of 0.7726.

Meanwhile, the market seems to have largely negated a strong bullish sentiment around commodity space, especially copper, which tends to underpin demand for the commodity-linked Australian Dollar, with the USD/US bond yield dynamics turning out to be key determinants of the pair's momentum on Thursday.

Traders now look forward to the US economic docket, highlighting the release of usual weekly jobless claims, for some short-term opportunities. The key focus, however, would remain on Friday's official monthly jobs report, popularly known as NFP, which would help determine the pair's next leg of directional move.

Technical levels to watch

Any subsequent weakness is likely to find support near the 0.7660-50 region, below the pair seems vulnerable to extend the downfall towards 0.7630-25 intermediate support en-route the 0.7600 handle.

On the flip side, momentum back above the 0.7700 handle might continue to confront some fresh supply near the 0.7720 region, which if cleared should lift the pair back towards 0.7745-50 supply zone.