AUD/USD surges through 0.7550 level on disappointing US economic data

The AUD/USD pair extended its recovery move from weekly lows and surged through mid-0.7500s following downbeat US economic releases.

Currently trading around 0.7565 region, the pair reversed majority of yesterday's losses after data released from the US showed economy growth slowing to 1.9% in the fourth quarter of 2016 and durable-goods orders falling for the second month in a row. 

Disappointing US economic data failed to assist the greenback's recovery move, with the key US Dollar Index reversing early gains and drifting back in to negative territory, and lifted the pair sharply higher. This coupled with, a steep decline in the US treasury bond yields boosted demand for higher-yielding currencies - like the Aussie and added legs to the pair's recovery move in the past hour.

Next on tap would be the release of revised UoM Consumer Sentiment index for Jan. and would be looked upon for some immediate respite for the greenback bulls. 

Technical levels to watch

The ongoing momentum seems strong enough to lift the pair further towards 0.7580-85 resistance area above which the pair seems all set to head towards reclaiming 0.7600 handle and eventually move towards testing its next major hurdle near 0.7645-50 region.

On the downside, 0.7535 level now becomes immediate support, which if broken should now drag the pair back towards the very important 200-day SMA support near 0.7500 psychological mark.