AUD/USD struggles to extend momentum beyond 0.70 mark ahead of US data

   •  The USD held on the defensive amid firming Fed rate cut expectations.
   •  Below-forecast Aussie GDP print does little to hinder the positive move.
   •  Traders now eye US macroeconomic releases for some fresh impetus.

The AUD/USD pair held on to its mildly positive tone through the mid-European session, albeit seemed struggling to extend the momentum further beyond the key 0.70 psychological mark.

The pair built on this week's bullish break through the 0.6935-40 supply zone and continued gaining positive traction in wake of the prevailing US Dollar selling bias. During a scheduled speech on Tuesday, the Fed Chair Jerome Powell refrained from repeating the patient stance and said that the central bank will do what it takes to sustain the expansion of the US economy. 

This came a day after St. Louis Fed President James Bullard said that a rate cut may be needed soon and increased possibilities of an eventual Fed rate cut by the end of this year. Firming market expectations kept exerting downward pressure on the greenback, which fell to its weakest since April 18 and was seen as one of the key factors driving the pair higher on Wednesday.

The positive momentum seemed rather unaffected by Wednesday's below-forecast Australian GDP figures, showing that the economic growth stood at 0.4% during the first quarter of 2019. The reading, however, was well above the previous quarter's 0.2% modest increase and remained supportive of the bid tone surrounding the Australian Dollar.

Meanwhile, a modest rebound in the US Treasury bond yields helped limit further USD weakness, which coupled with fears over a further escalation in the US-China trade tensions now seemed to cap any strong follow-through up-move for the China-proxy Australian Dollar.

Moving ahead, Wednesday's US economic docket - highlighting the release of ADP report on private sector employment and the ISM non-manufacturing PMI, will now be looked upon for some short-term trading opportunities later during the early North-American session.

Technical levels to watch