AUD/USD jumps closer to 4-month tops, back above 0.80 handle

   •  A modest USD rebound already seems to have lost steam. 
   •  Surging US bond yields does little to stall the up-move. 
   •  US political development remains a key determinant. 

The AUD/USD pair reversed an early dip to the 0.7980 region and was now seen building on its momentum further beyond the key 0.80 psychological mark.

A fresh wave of US Dollar selling pressure emerged since the early European session and was seen as one of the key factors behind the pair's up-move over the past few hours. The Senate failed to reach an agreement to keep the government funded and was seen weighing on the greenback at the start of a new trading week. 

Adding to this, the prevalent positive trading sentiment around copper prices further underpinned the commodity-linked Australian Dollar and contributed to some renewed buying interest around the major.

It, however, remains to be seen if the pair is able to build on the up-move amid the ongoing upsurge in the US Treasury bond yields, which tends to drive flows away from higher-yielding currencies - like the Aussie.

In absence of any major market moving economic releases on Monday, the USD price dynamics, led by fresh US political development, would continue to act as an exclusive driver of the pair's momentum. 

Technical levels to watch

Immediate resistance is pegged near the 0.8035 region, above which the pair seems more likely to aim towards reclaiming the 0.8100 handle with some intermediate resistance near 0.8070 area.

On the flip side, retracement back below the 0.80 handle, leading to a subsequent break below 0.7980 level (session lows), could accelerate the fall towards 0.7940 support en-route the 0.7900 round figure mark.