AUD/USD fades a modest up-tick beyond 0.7600 handle

The AUD/USD pair faded a modest up-tick and retreated around 20-pips from session tops, now testing session lows near 0.7595 region.

The pair on Monday had a muted reaction to the in-line with estimate release of Chinese inflation figures. Even a modest retracement in the US Treasury bond yields, leading to subdued US Dollar action, did little to boost higher-yielding currencies - like the Aussie.

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Meanwhile, a softer tone surrounding the commodity space, especially weakness in copper and gold prices, was seen denting demand for commodity-linked currencies and failed to help the pair to hold early minor gains beyond the 0.7600 handle. 

From a technical perspective, the pair has been consolidating last week's sharp reversal from 3-1/2 month tops and oscillated within a 60-70 pips broader trading range. Hence, it would be prudent for a decisive break through the mentioned range before determining the pair's next leg of directional move.

Later during the day, the US Labor Market Conditions Index would be looked upon for some trading impetus, while focus would remain on the Fed Chair Janet Yellen's testimony and the key US macro data - monthly retail sales and the latest CPI print. 

Technical levels to watch

The lower end of the recent trading range, near the 0.7570 region, remains an immediate strong support to defend, below which the pair is likely to accelerate the slide towards the very important 200-day SMA support near 0.7235-30 region ahead of the key 0.75 psychological mark, also coinciding with 100-day SMA. 

On the upside, sustained momentum above the 0.7600 handle might continue to face strong hurdle near 0.7630-35 region, which if cleared has the potential to lift the pair back towards the 0.7700 round figure mark with some intermediate resistance near 0.7680 horizontal level.