AUD/USD inching back closer to 15-month tops

The AUD/USD pair caught some fresh bids at lower levels and has now reversed majority of its early corrective drop to the vicinity of 0.7800 handle.

In absence of any fresh development, the pair's up-move over the past couple of hours could be attributed to a fresh leg of slide in the US Treasury bond yields, which failed to extend any support to the US Dollar's tepid recovery move and was seen benefitting higher-yielding currencies - like the Aussie. 

Adding to this, the prevalent positive trading sentiment around commodity space, especially copper, and today's upbeat Chinese macro data remained supportive of the pair up-move back closer to session tops near the 0.7825 region. 

   •  China: Q2 GDP beat expectations, manufacturing recovery strengthens - HSBC

It, however, remains to be seen if the pair is able to build on the up-move further beyond 15-month tops touched on Friday or runs through some offers at higher levels, amid near-term overbought conditions and ahead of Tuesday's release of RBA monetary policy meeting minutes. 

Next on tap would be the release of Empire State Manufacturing Index from the US, which might provide some impetus for short-term traders.

   •  AUD/USD bullish, set sales for 0.7900 – UOB

Technical levels to watch

Bulls would be eyeing for a decisive break through 0.7835 level, above which the upward trajectory could get extended towards 0.7870-75 region en-route the 0.7900 handle. On the flip side, the 0.7800 mark now seems to have emerged as immediate support, which if broken could extend the corrective slide towards 0.7765-60 area en-route 0.7730-25 strong horizontal support.