AUD/USD hangs near 30-month lows, bears eyeing a decisive break below 0.7100 handle

   •  Escalating US-China trade tensions continue to weigh on the Aussie.
   •  Firming Fed rate hike expectations underpin USD and weigh further.

The AUD/USD pair struggled to build on early attempted rebound and is currently placed at 30-month lows, around the 0.7100 handle. 

The latest US monthly jobs report reaffirmed prospects for an eventual Fed rate hike move in September and reignited the US Dollar rally on Friday. This coupled with escalating US-China trade tensions further dented the already weaker sentiment surrounding the China-proxy Australian Dollar. 

Against the backdrop of earlier promises to levy duties on $200 billion worth of Chinese goods, the US President Donald Trump threatened to impose tariffs on a further $267 billion worth of Chinese imports and resurfaced worries about a full-blown trade war between the world's two largest economies.

The downfall, however, remained cushioned, at least for the time being amid absent relevant market-moving economic releases. Moreover, near-term highly oversold conditions further warrant some consolidation before the pair continues with its well-established bearish trajectory.

Technical levels to watch

A follow-through selling below the 0.7100 handle is likely to accelerate the fall towards 0.7060-50 intermediate support before the pair eventually aims towards challenging the key 0.70 psychological mark. 

On the flip side, any meaningful recovery attempts might now confront fresh supply near the 0.7150-60 region, above which the short-covering move could further get extended towards the 0.7200 round figure mark.