AUD/USD headed for its lowest weekly close since early July, US GDP awaited

   •  A renewed uptick in US bond yields exerting follow-through pressure.
   •  Political uncertainty adds to the bearish sentiment.
   •  Poised for its lowest weekly close since early July.

The AUD/USD pair trimmed some of its early losses and has managed to rebound around 20-pips from fresh 3-1/2 month lows touched earlier today.

The pair built on its overnight bearish break below the very important 200-day SMA and touched an intraday low level of 0.7625, the lowest since July 12 amid resurgent US Dollar. A renewed uptick in the US Treasury bond yields provided an additional boost to the already bullish greenback and continued exerting pressure on the higher-yielding Australian Dollar. 

The downward trajectory extended after the PM Malcolm Turnbull’s party lost its wafer-thin parliamentary majority. Against the backdrop of Wednesday's softer Australian CPI print, the latest political development added a layer of uncertainty and kept bulls on the back-foot through the final trading session of the week.

The selling pressure seems to have abated for the time being as investors now look forward to the advance release of US Q3 GDP growth figures for some fresh impetus. Nevertheless, the pair remains on track to post its lowest weekly close since early July. 

   •  AUD/USD points to some consolidation – Commerzbank

Technical levels to watch

Any subsequent recovery is likely to confront resistance near 0.7665 level, above which a bout of short-covering could lift the pair back towards 200-day SMA, support turned resistance, near the 0.7695-0.7700 region.

On the flip side, weakness below 0.7625 level (session lows) is likely to find some support near the 0.7600 handle, which if broken would turn the pair vulnerable to aim towards testing 0.7575 intermediate support en-route 0.7535-30 zone.