AUD/USD refreshes session tops, bulls eyeing a sustained move beyond 0.7100 handle

   •  Disappointing US economic data prompts some USD weakness and helped regain traction.
   •  The USD bulls seemed rather unimpressed by the ongoing upsurge in the US bond yields. 
   •  Fresh optimism over US-China trade talks underpins Aussie and remained supportive.

The AUD/USD pair caught some fresh bids during the early North-American session, with bulls making a fresh attempted to extend the momentum beyond the 0.7100 handle.

Despite the ongoing upsurge in the US Treasury bond yields, the US Dollar failed to capitalize on the intraday positive move to near three-week lows and was seen as one of the key factors behind the pair's sudden pickup since the mid-European session. 

In fact, the greenback drifted back into the negative territory following the disappointing release of US economic data, showing that personal income rose less than expected by 0.2% and personal spending also missed consensus estimates to record a modest growth of 0.1%.

Adding to this, the core PCE price index - the Fed's preferred inflation gauge, unexpectedly decelerated to 0.1% m/m rate in January and the yearly rate also more than expected to 1.8% as compared to an upwardly revised reading of 2.0% recorded in the previous month.

Apart from some USD weakness, the latest optimism over some progress in the US-China trade talks remained supportive of the bid tone surrounding the China-proxy Australian Dollar and the pair's attempted recovery move from over one-week lows set in the previous session.

Today's US economic docket also features the release of Chicago PMI, which followed by the Revised UoM Consumer Sentiment Index will further influence the USD price dynamics and further collaborate towards producing some short-term trading opportunities.

Technical levels to watch

Momentum beyond the mentioned handle is likely to confront some resistance near the 0.7115 level, above which the pair is likely to aim towards challenging weekly tops, around the 0.7140-50 supply zone. On the flip side, the 0.7075-70 region now seems to protect the immediate downside, which if broken might turn the pair vulnerable to extend the slide further towards testing the key 0.70 psychological mark.