AUD/USD recovers from 27-month lows, up little around 0.7180 level

   •  A modest USD retracement prompts some short-covering from oversold conditions.
   •  Positive copper prices underpin commodity-linked Aussie and remain supportive.

The AUD/USD pair built on its steady climb from a 27-month low level of 0.7144 but seemed struggling to make it back above the 0.7200 handle. 

The ongoing US Dollar rally paused, at least for the time being, and was seen as one of the key factors that helped ease the strong bearish sentiment surrounding the major. 

The USD bulls seemed unimpressed by the release of US trade balance data, coming in to show a deficit of $50.1 billion in July as compared to previous month's deficit of $45.7 billion.

Meanwhile, a sudden spike in the GBP/USD major, triggered by the latest Brexit headlines, exerted some downward pressure on the buck and remained supportive of the modest recovery move. 

The coupled with an uptick in copper prices extended some additional support to the commodity-linked Australian Dollar, albeit a move back towards session tops, touched in the aftermath of upbeat Aussie Q2 GDP growth figures, still looks elusive. 

Technical levels to watch

Any meaningful recovery attempt beyond the 0.7200 handle might continue to confront immediate resistance near the 0.7215-20 region and is followed by the 0.7245-50 supply zone. On the flip side, the 0.7150-45 region might continue to protect the immediate downside, which if broken might turn the pair vulnerable to head towards testing the 0.7100 handle.