AUD/USD: modest recovery move fizzles ahead of 50-DMA

   •  USD remains supported by in-line US Q4 GDP print.
   •  Sliding US bond yields might help limit downside. 

The AUD/USD pair struggled to build on its steady recovery move and has now retreated few pips from session tops. 

The pair shrugged off softer Chinese official PMI prints and found decent support at the very important 200-day SMA, near the 0.7780 region during the Asian session. 

The uptick, however, failed ahead of the 50-day SMA, support turned resistance, and the pair slipped back below the 0.7800 handle in a knee-jerk reaction to the in-line release of revised US GDP print for the fourth quarter of 2017. 

Meanwhile, retracing US Treasury bond yields, which tends to drive flows towards higher-yielding currencies - like the Aussie, did little provide any fresh bullish impetus, with the prevalent bullish sentiment surrounding the US Dollar capping any meaningful up-move. 

The price-action now seems to suggest bears' reluctance to place aggressive bets and hence, it would prudent to wait for a convincing break below the 200-day SMA support before positioning for any further near-term depreciating slide.

Technical outlook

Valeria Bednarik, American Chief Analyst at FXStreet writes: “Short-term, and according to the 4 hours chart, the risk remains skewed toward the downside, as the pair is trading below its 20 SMA and its 200 EMA, while the Momentum indicator presents a bearish slope within negative territory, as the RSI hovers around 42. Renewed selling pressure below the 0.7790 level will likely see the pair retesting 0.7758, February low, en route to the 0.7710 region.”