AUD/USD testing daily highs near mid-0.7500s; will it sustain?

Having posted a session low near 0.7520 region, the AUD/USD pair regained traction and reversed majority of its corrective losses posted on Friday.

Currently trading around 0.7540 region, just a few pips away from session tops, the pair's up-move over the past couple of hours lacked any fundamental trigger and hence, runs the risk of a sharp reversal amid ongoing up-move in the US treasury bond yields. 

Against the backdrop of increasing odds for an eventual Fed rate-hike action on Wednesday, rising bond tends to drive flows away from higher-yielding currencies - like the Aussie. 

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Moreover, weaker sentiment surrounding commodity-space, especially copper, might also collaborate towards keeping a lid on any further up-move for the pair. 

Hence, it would now be interesting to see if the up-move is able to attract any follow through buying interest or runs through fresh offers ahead of the 100-day SMA important hurdle near 0.7555 region.

Technical levels to watch

Strong bullish momentum beyond the mentioned 100-day SMA barrier is likely to get extended towards 0.7585 horizontal resistance en-route the 0.7600 handle.

On the downside, weakness below session lows support near 0.7520 level now seems to drag the pair below the 0.7500 handle towards its next support near 0.7470-65 region.