AUD/USD falls back towards 0.7700 as USD regains poise ahead of key US data

• AUD/USD fades a bounce to 0.7735, as USD bulls fight back control.
• The US dollar resumes Yellen-induced upside, as S&P 500 futures pare gains.
• US ADP jobs and Services PMI to offer fresh cues ahead of Friday’s NFP.

AUD/USD is turning south once again in the European morning, as the US dollar has jumped back on the bids amid a mild risk-aversion wave sweeping through.

After a brief pullback in the US dollar earlier in the Asian session, the bulls have regained control, as the S&P 500 futures pare gains, suggesting that the risk-on sentiment could be waning.

Markets remain concerned about growing covid worries in Asia, especially after a new local case of coronavirus was found in Sydney.

The Asian rebound in the aussie from Tuesday’s low of 0.7676 was mainly driven by a broad dollar retreat. Upbeat Australian April Markit Final Services PMI and Building Approvals data also backed the recovery in the spot to near the 0.7735 region.

However, US Treasury Secretary Janet Yellen’s comments-induced uptrend in the greenback seems to have resumed ahead of the key ADP jobs and ISM Services PMI data.

Yellen said that "It may be that interest rates will have to rise somewhat to make sure that our economy doesn't overheat, even though the additional spending is relatively small relative to the size of the economy.”

AUD/USD technical levels