AUD/USD building on to its gains above 0.7700 handle

Having posted a session low near 0.7650, the AUD/USD pair recovered its lost ground and is now building on to its move above 0.7700 handle to currently trade at session high around 0.7710 level.

During Asian session the pair dropped after the release of minutes from RBA's latest monetary policy meeting when the central bank decided to slash its benchmark rates by 25 bps to a record low of 1.50%. The minutes revealed central bank's readiness to ease further, if required, but the pair shrugged-off dovish tone and surged past 0.7700 handle amid bearish sentiment surrounding the greenback. 

Later during NA trading session, CPI, housing starts and industrial production data from the US would provide fresh impetus ahead of Wednesday's FOMC meeting minutes, which would drive the greenback in the near-term. 

Technical levels to watch

A follow through buying interest above 0.7725 (August 12 high) is likely to boost the pair further towards recent swing highs resistance near 0.7755 region, above which the pair seems to aim towards reclaiming 0.7800 handle and head towards testing April high resistance near 0.7830-35 region.

On the flip side, weakness back below 0.7700 handle, and a subsequent break below 0.7670 support, would negate the near-term bullish outlook and drag the pair below Monday's swing low support near 0.7635, towards testing a major support near 0.7610-0.7600 area.