AUD/USD: attempting another run towards 0.78?

FXStreet (Mumbai) - The Australian dollar holds moderate gains versus the US dollar in the early Asian trades, lifting AUD/USD from fresh two-day lows reached just ahead of 0.77 handle on Monday. The Aussie poses a weak recovery largely as the US dollar took a breather in its rally following better than expected US existing home sales data.

AUD/USD halts a two-day decline

Currently, the AUD/USD pair trades 0.13% higher at 0.7736, supported above 20-DMA located 0.7727. The Australian dollar edged higher versus the US dollar, stepping in to the Asian session, as markets consolidate previous two consecutive days of heavy losses ahead of Chinese manufacturing PMI data due out shortly.

The Aussie extends recovery after the US dollar rebounded sharply on Monday on the release of upbeat US existing home sales in May which provided the much needed impetus to the buck.

While, The Greek drama is set to continue, since euro zone officials expressed a need to study the new documents further, which may keep the USD largely subdued on rising EUR/USD on expectations of Greece solution.

In the day ahead, a heavy North American calendar is expected to keep the traders busy with crucial durable goods orders from the US on cards.

AUD/USD Technical Levels

The pair has an immediate resistance at 0.7799 (June 22 High) levels, above which gains could be extended to 0.7851 (June 18 High) levels. On the flip side, support is seen at 0.7727 (20-DMA) levels from here it to 0.7708 (June 18 Low) levels.