AUD/USD retreats from 2-week tops, around mid-0.7900s ahead of US data

   •  Reviving USD demand prompts some profit-taking.
   •  All set to snap two consecutive weeks of losing streak.

The AUD/USD pair surrendered a major part of its early strong gains and has retreated back to mid-0.7900s, down around 40-pips from two-week lows touched earlier. 

In absence of any fresh development, the latest leg of slide over the past couple of hours could be attributed to easing US Dollar bearish pressure. A modest uptick in the US Treasury bond yields seems to have prompted some USD short-covering move, amid near-term oversold conditions and was also seen weighing a bit on higher-yielding currencies - like the Aussie. 

Further downside, however, remained cushioned by the prevalent positive trading sentiment around commodity space, especially copper, which tends to underpin demand for the commodity-linked Australian Dollar.

Next in focus would be the US economic docket, featuring the release of housing market data and Prelim UoM Consumer Sentiment, which might provide some fresh trading impetus during the early NA session.

Technical levels to watch

A follow-through retracement below 0.7935-30 zone is likely to accelerate the fall towards the 0.7900 handle before the pair eventually drops to test 0.7860-55 strong horizontal support.

On the upside, the 0.7990-0.8000 region now seems to have emerged as immediate resistance, above which the pair is likely to head towards testing 0.8060 supply zone en-route the 0.8100 handle.