AUD/USD trims gains, back around 0.75 handle ahead of ADP

   •  Positive US bond yields limit USD profit-taking and keep a lid. 
   •  Bullish commodity prices did little to provide any additional boost.
   •  ADP report might provide some impetus ahead of the Fed.

The AUD/USD pair trimmed some of its early strong recovery gains and has now retreated around 25-pips from session tops. 

The pair's retracement since the early European session, from an intraday high level of 0.7530 could be solely attributed to a follow-through pickup in the US Treasury bond yields that helped limit any deeper US Dollar profit-taking slide and kept a lid on the pair's attempted recovery. 

Despite a pull-back, the pair has managed to hold with modest gains and was being supported by the prevailing strong bullish sentiment around commodity space, especially copper, which although did little to provide any additional boost but extended some support to the commodity-linked Australian Dollar. 

Traders now look forward to the US private sector employment details - ADP report, for some short-term trading impetus. The key focus, however, remains on the highly anticipated FOMC decision, where clues over the central bank's tightening path will help determine the next leg of directional move for higher-yielding currencies - like the Aussie.

Technical levels to watch

The 0.7485-80 region now seems to act as an immediate support, below which the pair is likely to extend the downfall further towards mid-0.7400s. On the flip side, sustained move beyond 0.7530 level, leading to a subsequent breakthrough mid-0.7500s, now seems to pave the way for an extension of the pair’s recovery move further towards reclaiming the 0.7600 handle.