AUD/USD recovers early lost ground, bounces back to 0.78 handle

   •  USD weighed down by the latest US political developments.
   •  Positive commodities/subdued US bond yields supportive.

The AUD/USD pair recovered early lost ground to fresh weekly lows and is now looking to build on its momentum beyond the 0.7800 handle.

The pair once again managed to catch some fresh bids near the 0.7770 level and was supported by some renewed US Dollar selling pressure on the back of the latest US political turmoil.

The US President Donald Trump sacked H.R. McMaster as his national security adviser and prompted some fresh USD weakness, helping the pair to stall overnight sharp fall led by fear of a full-blown US-China trade war. 

Meanwhile, a mildly positive tone around commodity prices and a subdued action around the US Treasury bond yields, which tends to underpin commodity-linked/higher-yielding currencies - like the Aussie, remained supportive of the pair's modest uptick from Asian session lows.

Moving ahead, today's US economic docket - featuring the release of housing market data, industrial production figures and Prelim UoM Consumer Sentiment - would now be looked upon for some fresh impetus later during the early NA session.

Technical levels to watch

A follow-through up-move is likely to confront immediate resistance near the 0.7820 region, above which the pair seems all set to extend the momentum towards 0.7875 supply zone. On the flip side, 0.7770 level might continue to lend immediate support, which if broken is likely to accelerate the fall towards 0.7725-20 support en-route the 0.7700 handle.