AUD/USD sits at session tops, around 0.7665 level

   •  Continues to find some support near 0.7640 level.
   •  Still seems vulnerable to extend the depreciating move.
   •  Focus remains on Tuesday’s RBA decision. 

The AUD/USD pair reversed an early dip back closer to 0.7640 support area and touched fresh session tops during the early NA session.

Currently placed around the 0.7660-65 region, the pair's relative outperformance has been primarily led by a sharp retracement in the US Treasury bond yields, which tends to benefit higher-yielding currencies - like the Aussie.

Adding to this, the prevailing bullish sentiment around commodity space further underpinned demand for commodity-linked currencies, including the Australian Dollar, and helped negate some follow through US Dollar strength. 

Looking at the broader picture, the pair's recent price action, over the past one-week or so, could be categorized as a consolidation phase. Moreover, the pair's inability to register any meaningful recovery back above the very important 200-day SMA points to an extension of the near-term depreciating move. 

   •  AUD/USD rangebound between 0.76/0.7730 – UOB

Investors, however, are likely to wait for Tuesday's RBA monetary policy decision before positioning for the pair’s next leg of directional move and hence, the current leg of recovery move runs the risk of changing its course, amid some repositioning trade. 

Technical levels to watch

Immediate resistance is pegged near 0.7675 level, which is followed by a strong hurdle near the 0.7700 handle (200-day SMA) and the 0.7725-30 region. On the downside, 0.7640 level remains an immediate support to defend, which if broken would turn the pair vulnerable to break below the 0.7600 handle and head towards testing its next support near the 0.7580-75 region.