AUD/USD gains traction further beyond 0.76 handle

The AUD/USD pair continued gaining traction through early NA session and has now jumped to fresh session tops beyond the 0.7600 handle.

Currently placed at session tops near 0.7615 region, the pair caught some fresh bids following a big miss for the US housing starts data, coming-in at 1092K for May as compared to 1156K previous (revised lower from 1172K). Meanwhile, building permits data were also weaker-than-expected, at 1168K, down from last month's 1228K.

The disappointing housing market data dragged the US Treasury bond yields lower, which eventually weighed on already weaker US Dollar and provided an additional boost to higher-yielding currencies - like the Aussie. 

With today's up-move, the pair now seems to have absorbed all the supply around the 0.7600 handle and hence, a follow through bullish momentum, led by short-covering remains a distinct possibility. Nevertheless, the pair remains on track for its second consecutive week of strong gains and is also set for its highest weekly close since late March. 

Technical levels to watch

Bulls would be eyeing for a decisive strength beyond 0.7635 level, above which the pair is likely to aim towards testing 0.7665-70 intermediate resistance en-route reclaiming the 0.7700 handle.

On the flip side, any pull-back below the 0.7600 handle might continue to find some fresh buying interest near 0.7575-65 area, which if broken could accelerate the slide back towards the very important 200-day SMA support near 0.7530 region.