AUD/USD jumps to fresh session tops, around 0.7665 level

   •  Sliding US bond yields help reverse early dip.
   •  Gains beyond 0.77 handle needed for additional gains. 

The AUD/USD pair has managed to recover nearly 25-pips from lows and is currently placed at fresh session tops, around 0.7665 level. 

The pair initially touched a three-day low level of 0.7642 during the Asian session on Monday and was being weighed down by a modest pickup in the US Dollar demand. However, a softer tone around the US Treasury bond yields, which tends to benefit higher-yielding currencies, helped the Aussie to regain some positive traction.

Adding to this, the Australian Dollar got an additional boost from mostly positive commodity prices, which coupled with concerns over the US tax legislation remained supportive of the pair's uptick through the early European session.

In absence of any major market moving economic releases on Monday, the pair remains at the mercy of any fresh news/developments over the US tax legislation and the US bond yield dynamics. 

Technical levels to watch

Immediate resistance is pegged near 0.7680 level, above which the pair is likely to make a fresh attempt to conquer the very important 200-day SMA hurdle near the 0.7700 handle.

On the flip side, any immediate downside is likely to find support near the 0.7625 region, which if broken would turn the pair vulnerable to break below the 0.7600 handle and head towards testing 0.7580-75 support area.