AUD/USD bulls struggling to defend 0.7100 handle

   •  A goodish pickup in the USD demand prompts some fresh selling.
   •  Retracing copper prices undermine Aussie and exert additional pressure.

The AUD/USD pair struggled to build on a late Asian session uptick to an intraday high level of 0.7125 and might now be headed towards the lower end of its daily trading range. 

A fresh wave of US Dollar strength, this time supported by renewed selling around the shared currency and the British Pound, was seen as one of the key factors exerting some fresh downward pressure on the major. 

Italian budgetary concerns continued to dent sentiment surrounding the common currency, while the British Pound was being weighed down by the incoming negative Brexit headlines. 

Adding to this, a modest retracement in copper prices further undermined demand for the commodity-linked and collaborated to the pair's latest leg of fall over the past hour or so. 

It would now be interesting to see if the pair continues to show resilience below the 0.7100 handle or the bearish pressure is strong enough to drag the pair back towards 32-month lows support near the 0.7050-40 region amid absent relevant market moving economic releases from the US.

Technical levels to watch

The 0.7090-85 zone might continue to protect the immediate downside, below which the pair is likely to accelerate the fall towards the 0.7050-40 region before eventually dropping to the key 0.70 psychological mark.

On the flip side, the 0.7125-30 region now seems to act as an immediate hurdle and is closely followed by the 0.7150-60 supply zone, which if cleared might assist the pair to aim towards reclaiming the 0.7200 handle.