AUD/USD tumbles to lows, US ISM PMI eyed ahead of Tuesday's RBA decision

   •  A modest USD recovery prompts some fresh selling.
   •  Sliding US bond yields fail to lend any support.
   •  RBA decision/NFP would determine the near-term trajectory.

The AUD/USD pair maintained its offered tone through the early NA session and is now headed back towards the lower end of its daily trading range. 

The US Dollar selling, triggered by worries about a potential global trade war, now seems to have abated and was seen exerting some downward pressure. Adding to this, weaker trading sentiment around commodity space, especially copper, was further seen denting sentiment surrounding the commodity-linked Australian Dollar and collaborated to the pair's offered tone. 

Even the ongoing slide in the US Treasury bond yields, which tends to drive flows towards higher-yielding currencies - like the Aussie, did little to lend any support and stall the pair's latest leg of the slide to the 0.7730 region, or fresh session lows. 

It would now be interesting to see if bulls are able to defend last week's over 2-month lows support near the 0.7715-10 region as traders now look forward to the US ISM non-manufacturing PMI for some fresh impetus. The key focus, however, remains on Tuesday's RBA monetary policy decision, which along with Friday's US monthly jobs report (NFP) would help investors determine the pair's next leg of directional move.

Technical levels to watch

Weakness below the mentioned support near the 0.7715-10 area is likely to accelerate the fall even below the 0.7700 handle towards testing the next major support near the 0.7665-60 region. 

On the upside, any recovery attempts beyond 0.7760 level might confront some fresh supply near the very important 200-day SMA, around the 0.7780 area, above which the pair is likely to aim towards retesting 100-day SMA barrier near the 0.7815-20 region.