AUD/USD clings to Australian jobs data-led gains to 2-week tops

After an initial dip to the 0.7400 neighborhood, the AUD/USD pair regained traction and turned positive for the seventh consecutive session, hitting fresh 2-week highs.

Currently trading above mid-0.7400s, the pair on Thursday benefitted from upbeat Australian employment figures for April, showing an unexpected drop in the unemployment rate (to 5.7% from 5.9%) and higher-than-expected rise in the number of employed people (at 37.4K vs 5K expected).

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The pair, however, seemed lacking a follow through momentum amid weaker sentiment surrounding commodity space, especially copper, and a modest recovery in the US treasury bond yields, underpinning the US Dollar demand, which tends to dent demand for commodity-linked / higher-yielding currencies - like the Aussie. 

Meanwhile, the latest political developments in the US should continue to grab all the attention and would remain a key determinant of the pair's momentum. Later during the NA session, the US economic docket that features - weekly jobless claims and Philly Fed Manufacturing Index, would be looked upon for short-term trading opportunities. 

Technical levels to watch

A follow through buying interest has the potential to continue boosting the pair further towards testing the key 0.75 psychological mark ahead of its next major hurdle near 0.7535 area. On the flip side, 0.7445-40 zone now seems to protect immediate downside, which if broken could accelerate the slide back towards the 0.7400 handle.