AUD/USD extends recovery from YTD lows, at session tops ahead of US data

   •  A modest USD weakness/retracing US bond yields prompts some short-covering move.
   •  Positive copper prices/risk-on mood further support the recovery bounce.
   •  Traders now look forward to the US economic docket for some fresh impetus.

The AUD/USD pair built on its steady recovery move from fresh YTD lows and is currently placed near session tops, around the 0.7675-80 region ahead of the US data.

Having dropped to an intraday low level of 0.7642, the lowest level since Dec. 18, the pair gained some respite from a subdued US Dollar demand. This coupled with retracing US Treasury bond yields provided an additional boost to higher-yielding currencies - like the Aussie. 

Moreover, the prevalent positive trading sentiment around copper prices / risk-on mood further underpinned demand for the commodity-linked / perceived riskier Australian Dollar and remained supportive of the bounce. 

It, however, remains to be seen if the recovery is backed by some genuine buying or is solely led by short-covering as traders now look forward to the US macro data for some fresh impetus.

Today's US economic docket, featuring the release of core PCE price index, personal income/spending data, the usual initial weekly jobless claims, Chicago PMI and revised UoM consumer sentiment, would be looked upon to grab some short-term trading opportunities.

Technical levels to watch

Any further up-move is likely to face immediate resistance near the 0.7700 handle, above which a fresh bout of short-covering should lift the pair back towards 0.7745-50 supply zone. On the flip side, 0.7660 level now becomes an immediate support to defend, which if broken could accelerate the fall further towards the 0.7600 handle.