AUD/USD retreats from 26-month tops, comes down to 0.8030

The AUD/USD pair built on previous session's bullish breakout beyond the key 0.80 psychological mark and spiked to fresh 26-month highs during Asian session on Thursday, albeit retreated few pips thereafter.

On Wednesday, the pair initially dropped below the 0.7900 handle on softer Australian inflation figures. The pair, however, reversed early losses and surged through the 0.80 handle in reaction to the less hawkish FOMC statement, which triggered a fresh leg of US Dollar sell-off. The up-move extended through Asian session on Thursday, lifting the pair beyond mid-0.8000s to the highest level since May 2015. 

Meanwhile, the greenback selling pressure seems to have abated a bit, at least for the time being, with the pair stalling its strong bullish momentum and has now retreated around 30-35 pips from swing highs.

Today's US economic docket features the release of durable goods orders, goods trade balance data and initial weekly jobless claims data, which would be looked upon for some fresh impetus later during the NA session.

Technical levels to watch

Valeria Bednarik, Chief Analyst at FXStreet writes, "in the 4 hours chart, technical indicators have resumed their advances within overbought territory, and following a consolidative stage, while the price accelerated further above a bullish 20 SMA. Despite overbought intraday, the risk remains towards the upside, supported by continued strength in equities and stocks."