AUD/USD keeps the red ahead of US ISM PMI, RBA in focus

   •  Softer Chinese PMI/resurgent US bond yields prompt some fresh selling.
   •  Renewed USD weakness helps limit further deeper losses. 
   •  US ISM PMI eyed for some impetus ahead of Tuesday’s RBA decision.

The AUD/USD pair maintained its offered tone and dropped to a fresh session low, around the 0.7670-65 region during the early NA session. 

Against the backdrop of today's softer than expected Chinese Caixin Manufacturing PMI, a goodish pickup in the US Treasury bond yields exerted some downward pressure around higher-yielding currencies - like the Aussie at the start of a new trading week. 

The latest leg of a sharp slide of around 15-20 pips over the past hour or so could also be attributed to a sudden retracement in commodity prices, especially copper, which tends to dent demand for the commodity-linked Australian Dollar. 

Meanwhile, some renewed US Dollar selling bias, triggered by the latest trade-war fears, extended some support and helped limit further downside, at least for the time being.

Traders now look forward to the US economic docket, highlighting the release of ISM manufacturing PMI for some short-term opportunities ahead of the latest monetary policy update by the RBA on Tuesday. This along with other major market-moving economic releases, scheduled for release during the course of this week, should help determine the pair's next leg of directional move.

Technical levels to watch

Immediate support is pegged near the 0.7655-50 region, below which the pair seems to continued drifting lower and head towards testing the 0.7600 handle. On the flip side, the 0.7690-0.7700 region now seems to have emerged as an immediate hurdle, which if cleared could lift the pair further towards the 0.7745-50 supply zone.