AUD/USD on bids for fourth straight session, jumps to over one-week highs

The AUD/USD pair continued gaining traction for the fourth consecutive session and built on previous session's breakout momentum beyond 0.7630-35 strong hurdle. 

The Australian Dollar was seen benefitting from domestic data that showed improving consumer confidence, with Westpac’s index rising rose by 0.4% m-o-m in July. Adding to this, firmer commodity prices, especially copper, and softer tone around the US Treasury bond yields were also seen boosting demand for commodity-linked/higher-yielding currencies - like the Aussie. 

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Meanwhile, the greenback remained heavily offered in wake of the latest political drama in the US, with the key US Dollar Index sinking to fresh multi-month lows and further collaborating to the pair's strong up-move to 6-day tops near the 0.7665 region. 

The pair, however, lacked any strong follow through momentum and trimmed some of its early gains as investors seemed reluctant to place aggressive bets ahead of the Fed Chair Janet Yellen's semiannual testimony on the central bank's monetary policy outlook before the House Financial Services Committee.

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Technical levels to watch

The 0.7630-35 resistance break area now seems to protect the immediate downside, which if broken could accelerate the retracement back towards the 0.7600 handle en-route 0.7580 important horizontal support. 

On the upside, momentum above 0.7665 level could assist the pair back towards reclaiming the 0.7700 handle ahead of multi-month highs resistance near 0.7710-15 region.