AUD/USD bounces off lows, but remains below 0.7100 handle

   •  A modest USD downtick helps reverse an early Asian session dip.
   •  Recession fears/US-China trade uncertainty seemed to cap gains. 

The AUD/USD pair managed to rebound around 15-20 pips from Asian session lows and is currently placed at the top end of its daily trading range, around the 0.7080-85 region.

The pair stalled last week's sharp retracement slide from three-week tops and managed to find some support ahead of the pre-FOMC swing lows amid a modest US Dollar downtick, though fears of a recession might keep a lid on any meaningful up-move. 

The inversion of the US Treasury bond yield curve, a closely-watched indicator for recession, appeared on Friday following another round of disappointing Euro-zone economic data, added to concerns of a weakening global growth. 

With traders still awaiting developments in the US-China trade talks, a fresh wave of global risk-aversion trade, as depicted by a sea of red across equity markets, should continue to benefit the greenback's relative safe-haven status and cap any further gains.

Hence, it would be prudent to wait for a strong follow-through buying before traders start positioning for any further positive momentum for the pair amid absent relevant market moving US economic releases at the start of a new trading week. 

Technical levels to watch