AUD/USD inching closer to multi-month lows
• US bond yields rebound and prompt some fresh selling.
• Challenges multi-month lows ahead of Tuesday's Chinese macro data.
The AUD/USD pair maintained its offered tone through the early NA session and is currently placed within striking distance of recent multi-month lows.
The pair's early attempted recovery move got sold into near the 0.7665 level, with a sharp rebound in the US Treasury bond yields prompting some fresh selling around higher-yielding currencies - like the Aussie over the past hour or so.
Currently trading around the 0.7640 region, the market seems to have largely ignored a mildly positive trading sentiment around commodity space. Even a modest US Dollar pull-back from highs failed to lend any support, with pair sliding back closer to multi-month lows support.
In the absence of any market-moving economic data from the US, the US bond yield dynamics might continue to act as an exclusive driver of the pair's momentum ahead of Tuesday's key Chinese data dump.
Technical levels to watch
Valeria Bednarik, American Chief Analyst at FXStreet writes, "the 4 hours chart shows that the risk is towards the downside, with the pair dangerously close to 0.7624, October low, and developing below the 20 SMA as technical indicators accelerate south within bearish territory. Below the mentioned low, the bearish momentum will likely accelerate, with 0.7550 being a probable bearish target for this Monday."