AUD/USD flirting with lows around 0.7865 level

The AUD/USD pair maintained its offered tone through mid-European session and is currently placed near session lows, around the 0.7870 region.

The US Dollar remained broadly higher and was being supported by a modest rebound in the US Treasury bond yields, which eventually weighed on higher-yielding currencies - like the Aussie. 

Meanwhile, traders seems to have largely ignored today's upbeat Chinese inflation figures and even a strong rally in copper prices did little to lend any support to the commodity-linked Australian Dollar, with some renewed greenback buying interest acting as an exclusive driver of the pair's weaker tone at the start of a new trading week. 

Traders would now take cues from the US economic docket, featuring the release of Empire State Manufacturing Index, ahead of the RBA monetary policy meeting minutes and RBA Assistant Governor Luci Ellis' speech during early Asian session on Tuesday.

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Technical levels to watch

A follow through weakness below 0.7860 level is likely to get extended towards 0.7825 intermediate support before the pair eventually drops to 100-day SMA near the 0.7800 handle.

On the upside, 0.7880 area now seems to have emerged as immediate resistance, above which the pair is likely to surpass the 0.7900 handle and aim towards testing 50-day SMA hurdle near the 0.7915 region.