AUD/USD retreats from 2-week tops, still well bid above mid-0.7800s

   •  A goodish USD rebound prompts some profit-taking at higher levels. 
   •  Weaker commodities/ positive US bond yields further cap gains. 
   •  Technical studies suggest limited downside from current levels. 

The AUD/USD pair trimmed some of its early strong gains and retreated over 20-pips from 2-week tops, touched earlier today.

A goodish pickup in the USD demand, with the key US Dollar Index managing to recover early lost ground, was seen as one of the key factors prompting some profit-taking at higher levels. 

Adding to this, a mildly positive tone around the US Treasury bond yields was further seen capping gains for higher-yielding currencies - like the Aussie. 

Meanwhile, a follow-through weakness in commodity prices, especially copper, further undermined demand for the commodity-linked Australian Dollar and collaborated to the pair's retracement from higher levels. 

Despite a modest pull-back, the pair remains supported by positive technical chart set-up and has managed to hold in positive territory for the second consecutive session. Hence, any subsequent retracement seems more likely to be limited and is likely to find some fresh buying interest near 100-day SMA resistance turned support, currently near the 0.7820 region, amid empty US economic docket. 

Technical levels to watch

Immediate support is pegged near the 0.7830-25 region, below which the pair could head back towards retesting sub-0.7800 level, nearing the very important 200-day SMA support.

On the upside, bulls would be eyeing for a clear breakthrough the 0.7900 immediate hurdle, above which the pair seems all set to aim towards retesting 0.7945-50 supply zone.