AUD/USD recovers early lost ground, back near 0.6770 area

• US-China trade uncertainties prompted some fresh selling on Tuesday.
• Falling US bond yields undermined the USD and helped limit the slide.
• Investors now look forward to US macro data for some fresh impetus.

The AUD/USD pair has managed to rebound over 20-pips from intraday lows and is currently placed at the top end of its daily trading range, around the 0.6770 region.
 
The latest optimism over the chances for a quick resolution to the US-China trade war fizzled out rather quickly and turned out to be one of the key factors that exerted some fresh downward pressure on the China-proxy Australian Dollar.
 
The pair failed to capitalize on the overnight strong recovery move of nearly 100-pips, rather met with some fresh supply on Tuesday and was further weighed down by downbeat comments from the RBA Deputy Governor Guy Debelle.

Weaker USD helped bounce off lows

Meanwhile, the market skepticism was evident from a fresh leg of a downfall in the US Treasury bond yields, which kept the US Dollar bulls on the defensive and helped limit any further downside for the major, at least for the time being.
 
The pair managed to find some support ahead of mid-0.6700s and has now moved within the striking distance of daily tops as market participants now look forward to the US Consumer Confidence Index for some meaningful trading impetus.

Technical levels to watch