AUD/USD defies broad USD strength, holding steady near 4-week peak

The Australian Dollar remained a standout performer on Wednesday, with the AUD/USD pair holding comfortably at nearly 4-week highs.

The pair, however, has retreated few pips from session high level of 0.7396 and is currently trading around 0.7380 region. The pair defied broad based US Dollar strength amid retracing US treasury bond yields, which tends to benefit higher-yielding currencies - like the Aussie. 

Meanwhile, a subdued price action around commodity space, especially a mild retracement in Copper prices, has failed to lend additional support to the pair's bid tone, which otherwise could have easily lifted the pair beyond 0.7400 handle. 

However, as we move closer to the scheduled event risk, President-elect Donald Trump's first post-victory press conference, the rally might run out of strength as traders would be inclined to unwind bearish US Dollar bets. 

Technical levels to watch

From current levels, a follow through retracement below 0.7370 level is likely to get extended towards session low support near 0.7355-50 region, which if broken has the potential to drag the pair back towards 0.7300 handle. On the upside, 0.7400 handle remains immediate hurdle above which a fresh bout of short-covering seems to boost the pair towards 50-day SMA resistance near 0.7420 region, en-route next major hurdle near 0.7450 level.