AUD/USD surges to 6-week tops, now eyeing a fresh bullish break through 100-DMA barrier

The Australian Dollar continued gaining traction through early European session, lifting the AUD/USD pair beyond mid-0.7500s to the highest level since April 25.

Today's slightly better-than-expected Australian GDP growth figures lifted the Australian Dollar across the board and helped the pair to build on previous session's break-out momentum through the 50-day SMA hurdle, and the key 0.75 psychological mark.

   •  Australian GDP: Blame the weather – HSBC

Markets also seems to have shrugged off a modest pick-up in the US treasury bond yields, underpinning the US Dollar demand,  and mildly weaker tone surrounding commodity space, which tends to dent demand for higher-yielding/commodity-linked currencies - like the Aussie.

With the greenback recovery move seems to have lost the momentum, amid cautiousness ahead of former FBI Director James Comey's testimony on Thursday, a follow through short-covering might have also collaborated to the strong bid tone surrounding the major for the fourth consecutive session.

The pair is currently placed at 100-day SMA barrier and in absence of any major market moving economic releases from the US, continuation of the pair's upward trajectory now seems a distinct possibility. 

Technical levels to watch

Persistent buying interest beyond 0.7565-70 are now seems to lift the pair beyond the 0.7600 handle towards testing 0.7610-15 resistance area. On the flip side, retracement back below 0.7535 level now seems to find strong buying interest near the 0.75 handle and hence, any follow through retracement now seems to be limited at 50-day SMA, resistance turned support, near 0.7490-85 region.