AUD/USD flirting with weekly lows, focus remains on Yellen and Trump’s healthcare bill

The AUD/USD pair remained under some selling pressure through European trading session on Thursday and dropped to fresh weekly lows near 0.7625 region. 

Spot prolonged its corrective slide from over four month highs touched on Tuesday and reversed over 100-pips in just three trading session. The pair weakened on Thursday despite of a minor recovery in commodity prices, especially copper, which tends to boost demand for commodity-linked currencies - like the Aussie. 

Meanwhile, a subdued greenback action, with the key US Dollar Index meandering around multi-week lows near mid-99.00s, did little to stall the pair's ongoing slide closer to the 50-day SMA immediate support.

A modest recovery in the US treasury bond yields seems to be only factor driving flows away from higher-yielding currencies and collaborating to the pair's downslide on Thursday amid data light economic docket.

Moving ahead, the Fed Chair Janet Yellen speech, due in a short while from now, should provide some fresh impetus ahead of the key vote on Trump's healthcare bill, the first major legislation of the new administration. 

Technical levels to watch

On a decisive break below the 50-day SMA support near 0.7620 region would turn the pair vulnerable to extend the corrective slide towards the very important 200-day SMA support near 0.7550-45 region, with some intermediate support near 0.7575-70 area. 

On the upside, 0.7675 level now seems to have emerged as immediate resistance, which if cleared decisively have the potential to lift the pair beyond the 0.7700 handle towards testing multi-month highs resistance near mid-0.7700s.