AUD/USD struggles near 1-week lows, around mid-0.6900s

• Trump’s fresh threat to raise tariffs on China continues to weigh on the Aussie.
• The USD remained supported by a follow-through uptick in the US bond yields.
• Traders now eye US macro data in order to grab some short-term opportunities.

The AUD/USD pair dropped to over one-week lows in the last hour, albeit managed to recover few pips thereafter.

The pair remained depressed through the Asian session on Tuesday and added to the overnight heavy losses amid fears of a further escalation in trade tensions between the world's two largest economies. 

On Monday, the US President Donald Trump threatened to impose another round of tariffs on Chinese imports if he does not reach a deal with his Chinese counterpart at the G-20 summit later this month.

This coupled with growing concerns over the outlook for global growth tempered overall market sentiment and kept exerting some downward pressure on the China-proxy Australian Dollar. 

Meanwhile, bullish traders seemed rather unimpressed by Tuesday's better-than-expected release of National Australia Bank’s (NABs) business confidence index, which rose to 7 in May from 0 in the previous month.

On the other hand, the US Dollar remains supported by a follow-through uptick in the US Treasury bond yields, albeit lacked any strong bullish conviction and helped limit the downside, at least for the time being.

Moving ahead, Tuesday's US economic docket - highlighting the release of Produce Price Index (PPI), will now be looked upon for some short-term trading opportunities later during the early North-American session.

Technical levels to watch