AUD/USD recovers lost ground, eyeing to clear 0.7700 barrier

The AUD/USD pair reversed majority of its early slide to session low and is now looking to regain control over the 0.7700 handle.

The pair on Thursday came under some selling pressure following a larger-than-expected drop in Australian private capital expenditure for the fourth-quarter of 2016. The selling pressure, however, abated near 0.7665 support area against the backdrop of slightly disappointing FOMC meeting minutes released on Wednesday.

According to the minutes from the Fed’s most recent meeting, uncertainty over the US President Donald Trump’s fiscal policies could delay a near-term rate hike action. The minutes also revealed that most Fed officials indicated a desire to hike rates “fairly soon” but failed to lend any support to the US Dollar.

Meanwhile, a mildly bearish trading sentiment around copper prices might weigh on the commodity-linked currencies – like the Aussie, and restrict any sharp up-side in a data light trading session on Thursday.

Technical levels to watch

Sustained move above 0.7700 handle seems to lift the pair towards 0.7720-30 resistance above which the pair is likely to aim towards testing Nov. daily closing highs resistance near 0.7760 region. On the flip side, weakness below 0.7665-60 immediate support now seems to get extended towards 0.7610 horizontal support before the pair eventually drops to its next support near 0.7555-50 region.