AUD/USD corrects from yearly tops, still above 0.78 handle

The AUD/USD pair stalled its recent upsurge and witnessed a minor profit taking slide from near 15-month tops touched on Friday.

Bulls seemed uninspired with today's upbeat Chinese macro data, showing economic growth of 6.9% during April-June quarter, industrial production rose 7.6% y-o-y and retail sales climbed 11% y-o-y. 

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Meanwhile, a modest US Dollar recovery prompted traders to take some profits off the table, especially after the pair's strong up-move of over 250-pips in just six trading session. 

With better-than-expected data from the world's second largest economy failing to provide any additional boost to the China-proxy Australian Dollar, the USD price-dynamics is turning out to be an exclusive driver of the pair's movement at the start of a new trading week.

Later during the NA session, the Empire State Manufacturing Index would be looked upon for some fresh trading impetus ahead of RBA Monetary Policy Meeting Minutes, due for release during early Asian session on Tuesday. 

Technical levels to watch

A follow through retracement below the 0.7800 handle could extend the corrective slide towards 0.7770-60 resistance turned support en-route 0.7730 level. On the upside, bulls would be eyeing for a sustained momentum beyond 2016 highs resistance near 0.7835 region, above which the pair is likely to aim towards reclaiming the 0.7900 handle for the first time since May 2015.