AUD/USD eases from tops, still comfortable above 0.75 mark ahead of US ISM

   •  The USD selling seems to have abated after better-than-expected US data.
   •  A modest rebound in the US bond yields prompts some profit-taking.
   •  Next on tap would be the US ISM PMI ahead of RBA monetary policy statement.

The AUD/USD pair trimmed some of its early strong gains and has now retreated around 20-pips from session tops, touched during the mid-European session. 

The post-FOMC US Dollar selling abated following the release of better-than-expected US economic data - nonfarm payrolls productivity, initial jobless claims and trade balance. This coupled with a modest rebound in the US Treasury bond yields prompted some profit-taking around higher-yielding currencies - like the Aussie.

Despite a modest downtick, the pair has managed to hold with strong gains comfortably above the key 0.75 psychological mark and was being supported by bullish copper prices, which tends to underpin demand for the commodity-linked Australian Dollar.

Traders now look forward to the release of US ISM non-manufacturing PMI for some fresh impetus ahead of Friday's RBA monetary policy statement and the keenly watched US NFP report later in the day.

Technical levels to watch

The 0.7545-50 region might continue to act as an immediate hurdle, above which the pair is likely to test 0.7575-80 supply zone before darting towards the 0.7600 handle. On the flip side, only a decisive break back below the 0.7500-0.7490 region would negate prospects of any further recovery and turn the pair vulnerable to extend its near-term bearish trajectory.