The AUD/USD pair found a strong resistance on Friday's strong closing above 2-1/2 year tops, 0.8100, though it has being retraced by a modest US Dollar rebound. The ongoing upsurge in the US Treasury bond yields helped ease the recent USD weakening and was seen capping any further gains for higher-yielding currencies - like the Aussie.
A positive trading sentiment in the commodity sector, especially copper, supported the commodity-linked Australian Dollar.
Meanwhile, fears of a trade war are growing following recent comments by the US Treasury Secretary Steven Mnuchin and the latest US tariff on imported washing machines and solar panels, might continue to cap any meaningful USD up-move and further contribute towards limiting any deeper corrective slide for the major.
Hence, now we are waiting for a strong follow-through weakness before confirming that the pair might have topped out in the near-term.
Technical levels to watch
Immediate support is pegged near the 0.8065-60 region, below which the pair is likely to accelerate the corrective slide towards 0.8020 level en-route the key 0.80 psychological mark.
On the upside, momentum beyond 0.8115 immediate resistance might continue to confront some fresh supply near the 0.8125-35 region, above which the pair seems all set to extend its near-term bullish trajectory.