AUD/USD surrenders early gains, back around 0.80 mark

The AUD/USD pair failed build on early up-move and has now retreated around 30-pips from session tops touched earlier during Asian session on Monday.

The pair ran through some fresh offers near 0.8035 supply zone and the pull-back was primarily led by a modest uptick in the US Treasury bond yields. Reviving hopes for additional Fed rate hike action by the end of this year seems to be only factor keeping a lid on any further up-move for higher-yielding currencies - like the Aussie. 

However, the prevalent positive sentiment around commodity space, especially copper, remained supportive for commodity-linked currencies and seems to contribute towards limiting deeper losses, at least for the time being. 

In absence of any major market moving economic releases from the US, traders would now take cues from RBA monetary policy meeting minutes, due for during early Asian session on Tuesday. In the meantime, the US bond yield dynamics would remain a key driver of the pair's movement on the first trading day of a new week. 

Technical levels to watch

A follow through weakness below the 0.80 handle is likely to find support near 0.7985-80 area, below which the pair is likely to accelerate the fall towards 50-day SMA support near the 0.7925 region.

On the flip side, bulls would be eyeing for a decisive break through 0.8035 hurdle, above which the pair is likely to surpass an intermediate resistance near the 0.8055-60 region and dart towards reclaiming the 0.81 handle.