AUD/USD remains capped below 0.7700 handle

   •  Softer Chinese manufacturing PMI prompts some fresh selling.
   •  Subdued USD demand/bullish commodities help limit downside.
   •  This week’s RBA/important macro releases eyed for fresh directional impetus.

The AUD/USD pair continued with its struggle to move back above the 0.7700 handle and retreated back closer to Friday's daily lows. 

Today's disappointing Caixin China Manufacturing PMI, coming in at 51.0 for March as compared to last month's 51.6, prompted some fresh selling around the China-proxy Australian Dollar. 

This coupled with a modest uptick in the US Treasury bond yields exerted some additional downward pressure on higher-yielding currencies - like the Aussie and further collaborated to the pair's weaker tone.

Meanwhile, bullish commodity prices, especially copper, extended some support to commodity-linked currencies, which coupled with a subdued US Dollar demand helped limit any further downside amid thin liquidity conditions. 

Moving ahead, this week's important events/macroeconomic releases, including the latest monetary policy update by the RBA and the keenly watched US monthly jobs report (NFP), would play a key role in determining the pair's near-term trajectory.

This week's busy economic docket kicks off with the release of US ISM manufacturing PMI, which would be looked to grab some short-term trading opportunities later during the early NA session. 

Technical levels to watch

The 0.7670-60 area might continue to act as an immediate support, which if broken might turn the pair vulnerable to extend its downfall towards testing the 0.7600 round figure mark. On the upside, the 0.7700 handle remains an important resistance, above which a fresh bout of short-covering could lift the pair back towards the 0.7745-50 supply zone ahead of the 0.7780-85 hurdle.