AUD/USD bulls regain control, retakes 0.8100 handle

   •  Retracing US bond yields prompt fresh USD selling.
   •  Bouncing commodity prices further underpin Aussie.
   •  Trump’s speech and key data/events hold the key.

The AUD/USD pair managed to recover early lost ground and is now making a fresh attempt to build on its momentum beyond the 0.8100 handle. 

Having dropped to an intraday low level below mid-0.8000s, the pair caught some strong bids and was now being supported by the resumption of the US Dollar's well-established bearish slide. 

A sharp retracement in the US Treasury bond yields prompted some fresh greenback selling since the early European session and was seen benefitting higher-yielding currencies - like the Aussie. 

A broadly weaker USD helped dollar-denominated commodities - like copper, to bounce off lows and provide an additional boost to the commodity-linked Australian Dollar.

It, however, remains to be seen if the pair is able to build on the momentum or once again meets with some fresh supply as traders now look forward to the only scheduled release of CB's Consumer Confidence Index from the US for some fresh impetus. 

The key focus, however, would be on the US President Donald Trump's first official State of the Union address, which along with the highly anticipated FOMC decision along with Wednesday's quarterly Australian inflation figures and Chinese official PMI figures would help determine the pair's near-term trajectory.

Technical levels to watch

Any subsequent up-move is likely to confront fresh supply near the 0.8135 region, above which the pair seems all set to aim towards reclaiming the 0.8200 handle.

On the flip side, any meaningful pull-back now seems to find immediate support near the 0.8065 region, which if broken might drag the pair back towards the key 0.80 psychological mark.