AUD/USD trims tepid recovery gains

Having posted a session high at 0.7258, the AUD/USD pair ran through fresh offers and trimmed some of its tepid recovery gains. 

Currently trading around 0.7340 region, the pair is now headed back towards the lower end of daily trading range as growing expectations of tighter Fed monetary policy stance in 2017 continues to underpin the greenback. In fact, the US Dollar Index has now recovered early lost ground and has now moved back closer to 103.00 mark. 

Earlier on Thursday, the pair staged a tepid recovery amid broad based greenback retracement as investors continued to unwind their positions and take profits off the table, following its recent up-surge and ahead of the Christmas holiday.

Investors on Thursday will remain focused on important US macro data, which includes - the final GDP print, durable goods order, core PCE price index and weekly jobless claims data, which might provide fresh impetus for the next leg of directional move for the major. 

Technical levels to watch

A follow through selling pressure below 0.7240-35 level is likely to drag the pair back towards 0.7220 intermediate support before the pair eventually breaks below 0.7200 round figure mark and head towards testing its next major support near 0.7150-45 region. On the upside, momentum above session peak resistance near 0.7260 area is likely to confront resistance near 0.7280 above which the pair seems all set to reclaim 0.7300 handle and aim towards testing 0.7325-30 resistance area.