AUD/USD recovers above 0.73 on fresh USD weakness

• Falling T-bond yields weigh on the greenback on Monday. 
• US Dollar Index falls to 10-day lows, approaches 96 handle.

With developments over the weekend suggesting that the U.S. - China trade conflict is not close to being resolved, the AUD started the week under pressure and the AUD/USD broke below 0.73 to refresh its daily low at 0.7285. However, with the greenback meeting a new selling wave in the NA session, the pair started to retrace its daily fall and was last seen trading at 0.7304, still down 0.38% on a daily basis.

Although there were wasn't a clear catalyst behind the recent USD weakness, falling Treasury bond yields seem to be making it difficult for the buck to find demand. With the 10-year T-bond yield losing 0.25%, the US Dollar Index is down 0.3% on the day at 96.15.

Earlier today, reports suggested that Chinese diplomats were unhappy over the wording of the joint statement that traditionally is released at the end of the annual Asia-Pacific Economic Cooperation (APEC) summit. CNN said that Chinese officials believed they were singled out with the line that reads “We agree to fight protectionism including all unfair trade practices” in the statement. 

There won't be any other macroeconomic data releases in the remainder of the day. In the early trading hours of the Asian session on Tuesday, the RBA is going to publish the minutes of its last meeting. Previewing the event, TD Securities analysts argued that it wouldn't be able to move the market "given the 6 Nov policy statement was more than fleshed out in the subsequent Statement on Monetary Policy.”

Technical levels to consider

The pair could face the first technical support at 0.7285 (daily low) ahead of 0.7225 (100-DMA) and 0.7165 (50-DMA). On the upside, resistances are located at 0.7325 (daily high), 0.7360 (Aug. 28 high) and 0.7450 (Aug. 9 high).