AUD/USD fades early bullish spike, slips into negative territory

The AUD/USD pair faded an early bullish spike to nearly 4-week highs and reversed all of its gains to session peak level of 0.7385. The pair has now drifted into negative territory and is currently hovering around session lows near mid-0.7300s. 

Earlier on Tuesday, the pair built on Monday's sharp recovery bound and jumped to the highest level since mid-Dec., despite of disappointing releases of Chinese CPI and Australian retail sales. Upbeat sentiment surrounding commodity space, especially Copper, was seen lending support for the pair's strong bid tone on Tuesday. 

However, reviving US treasury bond yields seems to be the only factor driving flows away from higher-yielding currencies - like the Aussie, and collaborating the pair's sharp reversal in the past hour or so. 

Later during NA session, the US economic docket, featuring the release of JOLTS job openings, will now be looked upon for some short-term trading opportunities. 

Technical levels to watch

A follow through selling pressure below 0.7350-40 area might drag the pair back towards back below 0.7300 handle towards testing 20-day SMA support near 0.7290-85 region. On the upside, momentum back above 0.7375 level might now lift the pair towards reclaiming 0.7400 handle, en-route 0.7415-20 resistance area.