AUD/USD struggles to stage a rebound, steadies around 0.7770

The AUD/USD pair failed to build on Monday's impressive gains and dropped to a daily low of 0.7764 before going into a consolidation phase on Tuesday. As of writing, the pair was down 0.35% on a daily basis at 0.7772.

Rising US Treasury bond yields seem to be helping the greenback stay resilient against its rivals. With the benchmark 10-year US T-bond yield gaining more than 1% on Tuesday, the US Dollar Index remains on track to close the day modestly higher a little below 91.00.

Earlier in the day, the data published by the Conference Board showed that the Consumer Confidence Index in the US rose to 121.7 in April, beating the market expectation of 113 by a wide margin. Nevertheless, this upbeat reading has virtually no impact on risk sentiment and Wall Street's three main indexes were last seen losing between 0.1% and 0.35%.

In the early trading hours of the Asian session on Wednesday, the Consumer Price Index data from Australia will be watched closely by market participants. The annual CPI is expected to rise to 1.4% in the first quarter from 0.9% and a higher-than-expected print could weigh on the AUD and vice versa.

AUD/USD outlook

"AUD/USD remains capped below its recent highs at 0.7815/16, as well as the more important 0.7838/49 high," noted Credit Suisse analysts. "A break above here would resolve the aforementioned range to the upside by triggering an irregular basing structure, confirming a resumption of the broader bull trend, suggesting a quick move to 0.7900/05 and then the 2021 high at 0.8000/07."

"A sustained move below 0.7700/7691 would turn the risks lower within the range and complete an intraday ‘double top’, with the next support just below here at 0.7680/74," analysts further added.

Additional levels to keep an eye on