The AUD/USD pair caught fresh bids during early European session and accelerated the up-move to the highest level since Dec. 19.

Currently trading around 0.7275-70 region, the pair maintained its bid tone for the second consecutive session amid mild US Dollar retracement in the wake of a pull-back in the US treasury bond yields. 

Moreover, possibilities of stops getting triggered on a sustained move above 0.7250 level could have also collaborated to the pair's sharp up-surge in past hour, to two-week highs. 

Investors on Wednesday will remain focused on the release of Fed December policy meeting minutes, which if reinforces market expectations of stronger US economic growth in 2017 would ensure faster Fed rate-tightening cycle and eventually attract fresh selling pressure around higher-yielding currencies - like the Aussie. 

Technical levels to watch

The ongoing momentum seems strong enough to lift the pair towards 0.7300 handle above which a fresh bout of short-covering has the potential to lift the pair further towards 0.7315 horizontal resistance, en-route 0.7335-40 strong hurdle. On the downside, 0.7255-50 area now becomes immediate support, which if broken is likely to drag the pair back towards 0.7220 horizontal support ahead of 0.7200 round figure mark.