AUD/USD breaks through 100-DMA barrier near 0.7820 area

   •  N. Korean headlines trigger a fresh wave of global risk-on trade.
   •  Renewed USD selling prompts some aggressive short-covering move.
   •  RBA Lowe’s speech/Aussie GDP figures to provide fresh impetus.

Having refreshed session lows during the early European session, the AUD/USD pair caught some strong bids and surged over 70-pips over the past hour or so.

The pair spiked through the 0.7800 handle and touched a one-week high level of 0.7822, moving beyond 100-day SMA hurdle, amid some intense US Dollar selling, triggered by positive geopolitical development in the Korean peninsula. 

A broad-based risk-on move in global financial markets, evident from a sudden spike in the US Treasury bond yields, prompted some aggressive short-covering rally and was seen benefitting perceived riskier currencies - like the Aussie. 

The up-move took along some short-term trading stops placed at the very important 200-day SMA barrier, near the 0.7785 region, and seems to have further collaborated towards accelerating the up-move. Hence, it would be prudent to wait for a follow-through bullish move to see if the upsurge is backed by genuine buying or is only a stop-run. 

In absence of any major market-moving economic releases from the US,  broader market risk sentiment and the USD price dynamics might continue to act as key determinants of the pair's momentum ahead of RBA Governor Lowe's speech and quarterly Aussie GDP growth figures. 

Technical levels to watch

A follow-through buying interest has the potential to continue boosting the pair further towards its next supply zone near mid-0.7800s, above which the up-move could get extended towards the 0.7900 handle.

On the flip side, 0.7820 level (100-DMA) now becomes an immediate support to defend, which if broken might prompt some fresh weakness and drag the pair back towards 0.7785 support (200-DMA) en-route 0.7755-50 support.