AUD/USD once again fails to sustain above 0.7700 handle

   •  Fails to capitalize on early up-move and subdued USD demand.
   •  Weaker copper prices prompt some selling at higher levels.
   •  US ADP report/ISM PMI eyed for some fresh impetus.

The AUD/USD pair surrendered a major part of its early strong gains to over 1-week high and quickly retreated around 25-pips from session tops. 

The pair continued with its struggled to sustain/build on the momentum beyond the 0.7700 handle and failed to capitalize on a subdued US Dollar price-action. 

Even a mildly weaker tone around US Treasury bond yields, which tends to underpin demand for higher-yielding currencies - like the Aussie, did little to provide any fresh bullish impetus.

A sudden fall in copper prices seems to be the only factor weighing on the commodity-linked Australian Dollar and behind the pair retracement from an intraday high level of 0.7717.

Despite the pull-back, the pair has managed to hold with some modest daily gains, marking the fourth session of a positive move in the previous four, with some renewed buying interest might now confirm a fresh bullish breakthrough a 1-week-old trading range. 

Traders now look forward to the US economic docket, highlighting the release of ADP report on private sector employment and ISM non-manufacturing PMI, for some short-term impetus ahead of Australian trade balance data on Thursday.

Technical levels to watch

Any subsequent weakness is likely to find support near the 0.7660-55 area, which if broken could drag the pair towards testing 0.7625 intermediate support en-route the 0.7600 handle. On the upside, bulls would be eyeing for a clear breakthrough 0.7715-20 immediate hurdle, above which the pair seems all set to challenge 0.7745-50 supply zone.