AUD/USD stalls modest recovery move near 0.7955, US ISM PMI ahead

   •  USD lacks any follow-through traction.
   •  Subdued US bond yields supportive.
   •  US ISM PMI eyed ahead of Aussie data and RBA.

The AUD/USD pair built on its steady recovery move from over 3-week lows and refreshed session tops in the last hour, albeit quickly retreated few pips thereafter.

The US Dollar struggled to build on Friday's post-NFP strong recovery move and helped ease the strong bearish pressure surrounding the major. The pair rebounded from sub-0.7800 level and gained an additional boost from better-than-expected Chinese Caixin services PMI print for January.

Adding to this, a subdued US Treasury bond yields remained supportive of a modest uptick around higher-yielding currencies - like Aussie. Moreover, a goodish rebound in commodity prices, especially copper further underpinned the commodity-linked Australian Dollar and collaborated to the pair's bid tone through the mid-European session.

Next in focus would be the US ISM non-manufacturing PMI print, which would be looked upon for some short-term trading opportunities ahead of Tuesday's Australian macro releases - monthly retail sales and trade balance data, and the key RBA monetary policy decision.

Technical levels to watch

Bulls would be eyeing for a sustained move beyond 0.7960 level, above which the pair is likely to aim towards reclaiming the key 0.80 psychological mark. On the flip side, the 0.7900 handle now seems to protect the immediate downside, which if broken should pave the way for an extension of the pair's near-term bearish trajectory.