AUD/USD consolidates below 0.80 handle, near 4-month tops

   •  A modest USD rebound capping additional gains.
   •  Weaker copper prices also doing little to lend support.
   •  Downside remains limited amid softer US bond yields.

The AUD/USD pair lacked any firm directional bias and seesawed between tepid gains/minor losses within a narrow trading range below the key 0.80 psychological mark. 

The pair now seems to have entered a bullish consolidation phase just below 4-month tops touched in the previous session and was being capped by a modest US Dollar recovery attempt. 

Adding to this, weaker commodity prices, especially copper, further dented demand for the commodity-linked currency and did little to assist the pair to build on its recent strong up-move.

Meanwhile, a softer tone surrounding the US Treasury bond yields was seen lending support and helped limit any deeper corrective slide from higher-yielding currencies - like the Aussie.

It would now be interesting to see if bulls are able to regain control or the pair extends its range-bound price action amid relatively lighter US economic docket, featuring the only release of Empire State Manufacturing Index.

Technical levels to watch

From current levels, the 0.80 handle is likely to act as an immediate resistance, above which the pair is likely to aim towards its next major hurdle near the 0.8030-50 region.

On the flip side, sustained weakness below mid-0.7900s could prompt some profit-taking slide back towards the 0.7900 handle en-route the 0.7870-60 strong horizontal support.