AUD/USD consolidates around 0.8100 handle, just below 2-1/2 year tops

   •  Surging US bond yields support a modest USD rebound. 
   •  Bullish copper prices help limit further downside. 

The AUD/USD pair lacked any firm directional bias and was seen oscillating within a narrow trading range, just below the 0.8100 handle.

The pair struggled to build on Friday's strong closing at over 2-1/2 year tops and was being capped by a modest US Dollar rebound. The ongoing upsurge in the US Treasury bond yields helped ease the recent USD bearish pressure and was seen capping any further gains for higher-yielding currencies - like the Aussie. 

The downside, however, remained cushioned by a positive trading sentiment around commodity space, especially copper, which was seen lending support to the commodity-linked Australian Dollar. 

Meanwhile, growing fears of a trade war, following the recent comment by the US Treasury Secretary Steven Mnuchin and the latest US tariff on imported washing machines and solar panels, might continue to cap any meaningful USD up-move and further collaborate towards limiting any deeper corrective slide for the major.

Hence, it would prudent to wait for a strong follow-through weakness before confirming that the pair might have topped out in the near-term. 

Later during the early NA session, traders would now take cues from the US economic releases - Core PCE Price Index and personal income/spending data. The key focus, however, would be on some important macroeconomic data, slated for release during the course of this week. 

Technical levels to watch

Immediate support is pegged near the 0.8065-60 region, below which the pair is likely to accelerate the corrective slide towards 0.8020 level en-route the key 0.80 psychological mark.

On the upside, momentum beyond 0.8115 immediate resistance might continue to confront some fresh supply near the 0.8125-35 region, above which the pair seems all set to extend its near-term bullish trajectory.