AUD/USD through 0.77 handle, hits fresh multi-month tops

The AUD/USD pair extended upbeat Chinese trade figures-led strong up-move and jumped beyond the 0.7700 handle to fresh multi-month tops.

The pair built on recent strong gains for the fifth consecutive session and has now appreciated by around 130-pips to move back closer to multi-month tops touched late June. Today's data released from China showed a wider-than-expected trade surplus for June, with both exports and imports bettering expectations and boosted demand for China-proxy Australian Dollar. 

   •  Forex Today: Antipodeans cheer China trade, US PPI, Fedspeaks eyed

Adding to this, persistent US Dollar selling bias, always backed by tumbling US Treasury bond yields following the Fed Chair Janet Yellen's perceived dovish testimony, was also seen driving flows towards higher-yielding currencies - like the Aussie. Moreover, the prevalent positive sentiment around commodity space remained supportive of the strong bid tone surrounding the major.

From a technical perspective, a strong follow through buying interest beyond multi-month highs resistance would confirm a fresh bullish breakout and pave way for continuation of the pair's strong appreciating move in the near-term.

Today's US economic docket, featuring the release of weekly jobless claims and the latest PPI print, would now be looked upon for some fresh impetus later during early NA session.

Technical levels to watch

Immediate resistance is pegged near 0.7730 level, which is closely followed by yearly tops hurdle near mid-0.7700s. A convincing break through the mentioned resistance levels has the potential to continue lifting the pair further towards 0.7775-80 intermediate resistance en-route the 0.7800 handle.

On the flip side, any retracement back below the 0.7700 handle now seems to find support near 0.7685 level, below which the pair is likely to witness a corrective slide back towards 0.7635-30 horizontal support ahead of the 0.7600 round figure mark.