AUD/USD bulls eyeing a move back above 0.7700 handle

   •  US-China trade tension keeps USD bulls on the back-foot.
   •  Bullish commodity prices/upbeat Aussie data support the up-move.
   •  A renewed uptick in the US bond yields might now cap additional gains.

The AUD/USD pair caught some fresh bids at the start of a new trading week, with bulls now eyeing to reclaim the 0.7700 handle.

With markets looking past Friday's disappointing headline NFP print, persistent concerns over US-China trade tensions kept the US Dollar bulls on the defensive and assisted the pair to regain some positive traction on Monday. 

Adding to this, today's upbeat release of AIG Construction Index from Australian and bullish copper prices remained supportive of the bid tone surrounding the Australian Dollar and further collaborated to the pair's uptick through the Asian session.

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

There aren't any major market-moving economic releases due on Monday and hence, the USD price dynamics might continue to act as a key determinant of the pair's momentum.

Technical levels to watch

Sustained move beyond the 0.7700 handle is likely to confront fresh supply near the 0.7720-30 region and is closely followed by resistance near the 0.7745-50 zone. On the flip side, any meaningful downslide might continue to find some support near the 0.7660-50 area, below which the pair seems vulnerable to slide further towards testing the 0.7600 handle.