AUD/USD jumps to 3-day tops beyond mid-0.7400s

After a weekly gap down, the AUD/USD pair regained traction and was seen building on Friday's strong up-move led by weaker NFP print.

Currently holding at 3-day tops, just above mid-0.7400s, the pair caught fresh bids following news of higher-than-expected corporate profits for the first quarter of 2017. Adding to this, stronger-than-expected Caixin Chinese services PMI provided an additional boost to the China-proxy Australian Dollar. 

   •  Australia: Business indicators shows company profits gain 6.0% while business inventories up 1.2% in Q1 - Westpac

Meanwhile, a modest recovery in the US treasury bond yields, always backed by an eventual Fed rate-hike expectations on June 14, coupled with weaker copper prices, might keep a lid on higher-yielding / commodity-linked currencies - like the Aussie. 

Moreover, investors might also refrain from initiating / carrying big bets ahead of the RBA monetary policy decision on Tuesday and hence, it would be interesting to see if the pair is able to attract any follow through buying interest or holds within previous week's trading range. 

Later during the NA session, the US economic data - Revised Nonfarm Productivity, ISM non-manufacturing PMI and factory orders data, would be looked upon for some short-term trading impetus.

Technical levels to watch

Immediate resistance is pegged near 0.7465-70 region, above which a bout of short-covering could lift the pair back towards reclaiming the key 0.75 psychological mark en-route 0.7520 horizontal resistance. 

On the downside, retracement back below 0.7440 level, leading to a subsequent drop below session lows support near 0.7425-20 area, would turn the pair vulnerable to break below the 0.7400 handle towards testing its next support near 0.7375-70 zone.