AUD/USD remains on track to post fourth weekly decline in the previous five

   •  Fails to benefit from persistent USD selling bias. 
   •  Resurgent US bond yields seemed to cap gains. 

The AUD/USD pair met with some fresh supply near the 0.7775 area and has now drifted back closer to the lower end of its daily trading range. 

Despite persistent US Dollar selling bias, further aggravated by the US President Donald Trump's latest tweet on trade war, the pair struggled to gain any positive traction and remained within striking distance of 2-month lows touched in the previous session.

A goodish pickup in the US Treasury bond yields, supported by hopes for a faster Fed monetary policy tightening cycle, was seen as one of the key factors weighing on higher-yielding currencies - like the Aussie. 

Further downside, however, remained cushioned amid a mildly positive sentiment around commodity space, especially copper, which tends to underpin demand for the commodity-linked Australian Dollar. 

In absence of any major market moving economic releases from the US, the US bond yield dynamics might continue to act as an exclusive driver of the pair's momentum on the last trading day of the week. Nevertheless, the pair remains on track to record its second consecutive week of losses, also marking its fourth in the previous five. 

Technical levels to watch

On a sustained weakness back below mid-0.7700s, the pair is likely to head back towards challenging the 0.7700 handle before eventually dropping to is next support near the 0.7665-60 region. 

Meanwhile, on the upside, any meaningful up-move is likely to confront fresh supply near the 0.7780-85 region (200-day SMA), above which a bout of short-covering could lift the pair back towards 100-day SMA hurdle near the 0.7820 region.