AUD/USD moves back closer to session tops, bulls await a move beyond 0.7400

The AUD/USD pair recovered over 40 pips from the daily swing lows and climbed back closer to daily swing highs, around the 0.7375-80 region.

Having found some support near the 0.7335-30 region, the AUD/USD pair attracted some buying on Tuesday and has now moved closer to the top end of a multi-day-old trading range resistance. The US dollar struggled to capitalize on its modest intraday gains amid a sharp intraday decline in the US Treasury bond yields and extended some support to the AUD/USD pair.

The intraday USD selling picked up pace during the early North American session in reaction to disappointing US Durable Goods Orders data. In fact, the headline orders recorded a modest 0.8% growth in June as against 2.1% anticipated. Adding to this, orders excluding transportation items also fell short of market expectations and rose 0.3% during the reported month.

That said, a generally weaker tone around the equity markets might act as a tailwind for the safe-haven greenback. Worries that the spread of the highly contagious Delta variant of the coronavirus could derail the global economic recovery continued weighing on investors' sentiment. This, in turn, might cap any meaningful gains for the perceived riskier aussie.

Investors might also refrain from placing any aggressive bets ahead of this week's key event risk – the FOMC monetary policy meeting. Even from a technical perspective, the AUD/USD pair has been struggling to move back above the 0.7400 round-figure mark. This further makes it prudent to wait for some strong follow-through buying before placing fresh bullish bets.

Technical levels to watch