AUD/USD hits fresh session tops, 0.77 handle back on sight

   •  Persistent USD weakness helps gain traction for the second straight session.
   •  Subdued US bond yields offset weaker copper prices and support the up-move.
   •  US housing market data eyed for some short-term trading opportunities.

The AUD/USD pair maintained its strong bid tone for the second consecutive session and is currently placed at session tops, around the 0.7680 region. 

After Friday's brief pause, the pair resumed with its last week's strong recovery move from the key 0.7500 psychological mark (6-month lows) and held in positive territory for the sixth trading session in the previous seven.

Persistent US Dollar selling bias, despite the latest optimism over the long-awaited US tax cut legislation, has been one of the key factors driving the pair higher.

Today's up-move was further supported by subdued action around the US Treasury bond yields, which tends to underpin demand for higher-yielding currencies - like the Aussie, which to some extent, helped partly offset weaker trading sentiment around copper prices.

Traders now look forward to the US housing market data in order to grab some short-term opportunities. The focus, however, would remain on the key Senate vote on a sweeping tax overhaul bill, expected later today and which would help determine the next leg of directional move.

Technical levels to watch

Immediate resistance remains near the 0.7700 handle (200-day SMA), above which a fresh bout of short-covering is likely to accelerate the up-move towards 0.7730 supply zone en-route mid-0.7700s.

On the flip side, 0.7665-60 area now seems to protect the immediate downside and is closely followed by support near 0.7635-30 zone ahead of the 0.7600 handle.