The current bounce in the AUD/USD is being driven by market positioning rather than any drastic change in fundamentals and as such, offers a good opportunity to sell.
There is clear short-term resistance at 0.7142/46.
The former was a daily low on September 17, which then sparked a rally to 0.7316, and the latter is the 38.2 Fibo of the fall from 0.7316 to Monday's 0.7041 low.
While long-dated U.S. Treasury yields reversed off fresh trend highs overnight, they remain at elevated levels and the spread to Australian yields from diverging central bank intentions will keep pressure on the AUD/USD.
The 2-year spread still favours Treasuries by 84.5 basis points.
Additionally the Trump administration appears to be doubling down in its pressure on China across both trade and geopolitical spheres - clearly not good for a nation reliant on trade like Australia nL4N1WP1VZ.
Asian currencies ex-Japan may rally a little in the short term, but overall, the pressure from rising U.S. yields will not be receding any time soon and that will remain another source of strain for the Aussie.
Earlier comment .