AUD/USD struggling to extend recovery move further beyond 0.7400 handle

The AUD/USD pair extended its recovery move and added to minor gains further beyond the 0.7400 handle following the release of monthly jobs report from the US.

The keenly watched employment details from the US showed the economy added 211K new jobs during the month of April, while the unemployment rate unexpectedly dropped to 4.4%. Market, however, seemed disappointment from yearly wage growth, falling to 2.5% in April from 2.7% reported in the previous month, which negated monthly wage growth of 0.3% (in-line with estimates).

The disappointment from yearly wage growth triggered a sharp reversal in the US treasury bond yields and did little to extend any additional support to the US Dollar's recovery move, albeit provided a minor lift to higher-yielding currencies - like the Aussie.

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The pair, however, lacked follow through buying interest and the pair retreated back below the 0.7400 handle. Nevertheless, the pair remains on track to record its third consecutive week of declines. 

Focus now shifts focus to a slew of speeches by influential FOMC members, including the Fed Chair Janet Yellen, where comments on the central bank's near-term monetary policy should provide fresh impetus later during the NY session.

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Technical levels to watch

Weakness back below 0.7385-80 immediate support now seems to drag the pair below multi-month lows towards testing its next support near 0.7340 horizontal level ahead of the 0.7300 round figure mark.

On the upside, momentum beyond the 0.7400 handle is likely to confront strong hurdle near 0.7420-25 region, which if conquered might trigger a short-covering bounce towards 0.7460-65 region.