AUD/USD hits 2-week tops amid notable USD supply

   •  Renewed USD weakness helps reverse early dip to sub-0.7600 level.
   •  A modest uptick in US bond yields/weaker copper prices fails to stall the up-move.
   •  US housing market data eyed for short-term trading impetus. 

Having posted a session low level of 0.7593, the AUD/USD pair caught some strong bids and jumped to 0.7640 level or two-week tops. 

Persistent greenback selling bias, with the key US Dollar Index languishing near six-week lows, has been one of the key factors driving the pair higher. Even a modest uptick in the US Treasury bond yields, amid fading expectations for aggressive Fed rate hike moves in 2018, did little to dampen the sentiment surrounding higher-yielding currencies - like the Aussie. 

Meanwhile, the market also seems to have largely ignored a sharp retracement in copper prices, which tends to weigh on commodity-linked currencies, including the Australian Dollar, with the prevalent bearish sentiment surrounding the buck turning out to be an exclusive driver of the pair's momentum at the start of a new trading week. 

Traders now look forward to the US housing market data - new home sales, for some short-term trading opportunities ahead of Fedspeaks later during the NY session.

Technical levels to watch

A follow-through buying interest beyond mid-0.7600s has the potential to continue lifting the pair towards the very important 200-day SMA hurdle near the 0.7695-0.7700 region.

On the flip side, retracement back below 0.7625 level could get extended even below 0.7590 horizontal level towards retesting a major support near mid-0.7500s.