AUD/USD inter-market: stages solid comeback, will it sustain?

AUD/USD staged a solid comeback on Thursday, rebounding sharply from just ahead of 0.76 handle. The Aussie remains strongly bids, although eased of highs as the bulls consolidate the latest leg higher near 0.77 handle ahead of the US datasets due for release in the NA session.

The strong recovery in the major can be largely attributed to 10-year yield differential favouring the AUD, especially in wake of stronger Aus jobs data and uncertainty surrounding Fed rate hike prospects. While a sharp rally in the copper also underpinned the resource-linked Aussie. Copper prices bounce +1.63% and remain within a striking distance of 2.20 handle.

However, over the last hours, the spot is seen struggling to extend gains as a cautious tone prevails across the markets, with the upside in the VIX gaining further traction. The CBOE volatility index (VIX), risk barometer, rallies nearly 1% to hit fresh session highs at 12.30 levels.

 Markets now look forward to the Australian construction as well as private capex data due next week for fresh direction on the major. While the US durable goods and prelim GDP data will  also have significant impact on the AUD/USD pair.