AUD/USD gains some traction, up-little around 0.7580 level

Following a 10-pips weekly bearish gap, the AUD/USD pair regained traction and is currently placed at session tops near 0.7580 region.

The pair turned positive for the second consecutive day and built on Friday's sharp recovery move, led by dovish comments from FOMC's Bullard and Mester. A follow through recovery in oil prices further seems to have lifted sentiment surrounding commodity-linked currencies and provided an additional boost to the pair's recovery move from closer to the very important 200-day SMA support.

Meanwhile, traders seemed to have largely ignored upbeat comments by San Francisco Fed President Williams, hinting towards start normalizing balance sheet this year, with subdued US Dollar action supporting the mildly positive tone surrounding the major.

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It, however, remains to be seen if the pair is able to build on the up-move amid a modest pick-up in the US Treasury bond yields, which tends to weigh on higher-yielding currencies - like the Aussie. 

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Today's US economic docket features the release of monthly durable goods orders data, which would now be looked upon for some fresh impetus later during the NA session.

Technical levels to watch

From current levels, 0.7590-0.7600 region is likely to act as immediate resistance, above which a fresh bout of short-covering could lift the pair back towards multi-month highs strong resistance near 0.7630-35 region.

On the downside, weakness below session lows support near 0.7560 level now seems to turn the pair vulnerable to head back towards testing the very important 200-day SMA support near 0.7530 region.