AUD/USD recovers further from decade lows, now eyeing 0.6800 handle
- The prevalent USD selling bias prompted some follow-through short-covering move.
- Upbeat Chinese trade balance data further boosted the China-proxy Australian Dollar.
- Traders now look forward to the second-tier US economic releases for some impetus.
The AUD/USD pair continued gaining positive traction through the early European session on Thursday and built on the previous session's solid rebound from over a decade low.
The overnight free-fall in the US Treasury bond yields - falling to the lowest level since October 2016, continued weighing on the US Dollar and turned out to be one of the key factors that prompted some aggressive short-covering move around the major.
Upbeat Chinese trade data, weaker USD supportive
The pair got an additional boost on Thursday following the release of stronger Chinese trade data, showing that exports rose 3.3% year-on-year in USD terms as against a drop of 2% anticipated while imports recorded a lower-than-expected fall of 5.6%.
This coupled with a weaker tone surrounding the greenback, which failed to gain any respite from a goodish pickup in the US Treasury bond yields, extended some additional support and remained supportive of the pair's ongoing recovery move.
The pair has now recovered back closer to the 0.6800 handle - the top end of its weekly trading range - and might continue to be influenced by the USD price dynamics ahead of the second-tier US economic releases - initial weekly jobless claims and Final Wholesale Inventories data.
Technical levels to watch