AUD/USD fails ahead of 0.77 handle, refresh daily lows

The AUD/USD pair reversed early recovery move to 0.7700 neighborhood and turned lower for the second straight session, refreshing daily lows near 0.7665 region. 

A small wave of US Dollar buying interest has been a key driver of the pair's slide during early European session. A follow through up-move in the US treasury bond yields is underpinning a modest US Dollar and was seen weighing on higher-yielding currencies - like the Aussie.

In addition to this, bearish trading sentiment around commodity space, especially copper, further dented demand for commodity-linked currencies and collaborated to the pair's reversal from session peak. 

The downslide, however, seems to have stalled as investors remained cautious ahead of the upcoming G20 meeting, with the pair bounce off few pips from lows to currently trade around 0.7675 region.

Later during the NA session, traders would take clues from the US economic data - industrial production and prelim UoM consumer sentiment index.

Technical levels to watch

Sustained weakness below 0.7665 level is likely to accelerate the slide below mid-0.7600s towards an important support near 0.7610 area ahead of 0.7585 support. 

On the flip side, the 0.7700 handle remains immediate strong hurdle, which if cleared decisively has the potential to lift the pair towards 0.7740 resistance before darting towards Nov. 2016 highs resistance near 0.7775-80 area.