AUD/USD remains capped below 0.77 handle post-US GDP

   •  US Q4 GDP growth revised higher to 2.9% but fails to impress USD bulls. 
   •  Sliding US bond yields offset weaker commodities and remain supportive.

The AUD/USD pair held on to its modest recovery gains but struggled to gain any follow-through traction and remained below the 0.7700 handle post-US GDP.

The pair held stable near the 0.7685-90 region and had a rather muted reaction to the final US GDP came in to show an annualized growth of 2.9% during the last quarter of 2017. 

The USD bulls, however, seemed unimpressed by a stronger-than-expected upward revision of the growth numbers, with the key US Dollar Index trimming some of its early strong gains and eventually lending some support. 

Meanwhile, the ongoing slide around the US Treasury bond yields, which to some extent seems to have negated weaker commodity prices, provided an additional boost to the higher-yielding Australian Dollar and remained supportive of the pair's uptick. 

Next on tap would be a scheduled speech by Atlanta Fed President Raphael Bostic, which might trigger some momentum later during the NY trading session.

Technical levels to watch

Bulls would be eyeing for a clear breakthrough the 0.7700 handle, above which the pair is likely to accelerate the recovery move towards 0.7725-30 intermediate hurdle en-route the 0.7760-65 supply zone.

On the flip side, weakness back below 0.7675 level is likely to get extended towards 0.7640 intermediate support before the pair eventually drops to test the 0.7600 round figure mark.