AUD/USD flirting with lows near 0.7900 handle

Having failed to clear an important supply zone near mid-0.7900s, the AUD/USD pair ran through some fresh offers and has now moved on the verge of breaking below the 0.7900 handle.

A goodish recovery in the US Treasury bond yields helped the US Dollar to build on its recovery gains through the mid-European trading session and was seen weighing on higher-yielding currencies - like the Aussie. 

Moreover, some long unwinding pressure, especially after the pair's repeated failure to break through 0.7950 strong hurdle, further aggravated the selling pressure and collaborated to the pair's offered tone for the first time in previous three trading sessions. 

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Even the prevalent positive trading sentiment around commodity space, especially copper, did little to extend any support to the commodity-linked currency, with broad-based USD recovery acting as an exclusive driver of the pair's movement on Tuesday.

Today's US economic docket lacks any major market moving economic releases and hence, a follow through corrective slide during the NY trading session now seems a distinct possibility.

Technical levels to watch

Immediate support is pegged near the 0.7880-70 region, below which the pair is likely to accelerate the slide towards 0.7830-25 support area en-route the 0.7800 handle. On the upside, 0.7940-50 area remains an immediate strong hurdle, which if cleared might trigger a short-covering rally back towards the key 0.80 psychological mark.