AUD/USD clings to strong gains above 0.7300 handle

After an initial dip to session low near 0.7290 region, the AUD/USD pair caught fresh bids and built on to its strength back above 0.7300 handle. 

Currently trading around 0.7325-30 region, the pair regained traction on Monday and has now reversed majority of Friday's NFP-led slide. Today's upbeat release of Building Approvals data from Australia helped shrug-off disappointing release of Australia ANZ job advertisement number and broad based US Dollar strength. 

Meanwhile, retracing US treasury bond yields also seems to be driving some flows towards higher-yielding currencies - like the Aussie, and contributing to the pair's up-move back closer to last week's three-week high touched in the aftermath of slight disappointment Fed meeting minutes. 

Next in tap would be speeches from couple of regional Fed Presidents, Boston Fed President Rosengren and Atlanta Fed Lockhart, which might provide some impetus for the major during NY trading session. However, investors focus would remain on Tuesday's release of Australian monthly retail sales and Chinese CPI print, slated for release during early Asian session. 

Technical levels to watch

Immediate resistance on the upside is pegged near 0.7340 region above which the pair seems more likely to surpass multi-week highs resistance near 0.7255 region and head towards its next important hurdle near 0.7275 area. On the flip side, 0.7300-0.7295 region (20-day SMA) now seems to have emerged as immediate support, which if broken is likely to accelerate the slide towards 0.7260 support ahead of 0.7240 important level.